Route2FI:
#Lighter Signs of Manipulation?
- A major whale holds a $24 million
#ARC long position and continues to add to it at a rate of $360,000 per hour via TWAP. Currently, this position has an unrealized profit of $5 million.
- This bears some resemblance to the JELLYJELLY incident on Hyperliquid last year.
- The key difference is: losses on similar positions on Hyperliquid are borne by the exchange's liquidity pool, whereas Lighter's LLP typically does not assume positions on its own but forcibly allocates them to other traders (ADL mechanism).
- The counterparty's short position holder