Whale's Market Manipulation Attempt Exposed
According to on-chain monitoring by Lookonchain, whale address 0x5F64 launched a high-risk market manipulation attempt on Feb 26. This entity deposited 8.39 million USDC into Lighter platform, trying to influence token price through leveraged long position on ARC.
Massive 210M ARC Long Position Liquidated
The whale established a massive long position of 210 million ARC tokens (valued at ~$20.45M) and successfully pushed the token price to $0.15. However, the market soon reversed dramatically, resulting in full liquidation of this position. The whale finally managed to withdraw only 3.06 million USDC, representing a staggering $5.3M loss.
Another Whale Successfully Exits with DCA Strategy
Notably, another whale address that purchased 16.2 million ARC for $573K two months ago employed a dollar-cost averaging (DCA) strategy during this price movement. The address successfully sold 9.8 million ARC at $0.115 average price, realizing $1.13M in proceeds. Currently holding 6.4 million ARC (~$303K), this position has locked in $861K in profits.
Warning on Market Manipulation Risks
- Large capital injections don't guarantee returns
- Leveraged trading carries liquidation risks
- Market eventually follows fundamental patterns
This incident once again proves that even with significant financial resources, it's difficult to completely control price movements in decentralized finance (DeFi) markets. Investors should remain vigilant against market manipulation and rationally assess risks.