$24M Whale Position Emerges on Lighter Platform
Route 2 FI monitoring reveals a significant accumulation pattern where a trader has built a $24M long position in ARC on the decentralized derivatives platform Lighter. Notably, the account systematically adds $360K hourly through TWAP mechanism, demonstrating a calculated accumulation strategy.
Current data shows the whale has already realized $5M in unrealized gains. Market analysts observe this systematic buying pattern is creating noticeable market impact and price discovery distortions.
Historical Precedent: The Hyperliquid Manipulation Case
Looking back at March 2025's incident on Hyperliquid: a trader executed a classic manipulation scheme by shorting JELLY perpetuals while simultaneously inflating spot prices across multiple accounts and chains, resulting in massive short liquidations.
This manipulation caused significant losses to Hyperliquid's HLP liquidity pool, forcing the platform to urgently delist the contract through governance vote and execute emergency settlement at distressed prices. Market participants now fear similar tactics may be resurfacing.
Market Response and Risk Signals
Current data shows annualized funding rates for ARC contracts have spiked to an extraordinary 2100%, equivalent to daily yield of 5.7% for short positions. This extreme rate environment is drawing increased short capital inflows.
- Long accumulation causing price distortions
- Extreme funding rates attracting arbitrageurs
- Market liquidity under dual-direction pressure
Investors should remain vigilant about potential volatility risks. Close position monitoring and risk management become critical under current market conditions.