A growing common tactic in the market is as follows—selecting small-cap tokens with low circulating supply, which can easily be pushed to move the spot price with limited funds. The real killer move occurs in the futures market. When these tokens are simultaneously launched with high leverage perpetual contracts, the volatility in the spot price is amplified through the mark price mechanism, increasing liquidation pressure and creating a chain reaction.

How does it work specifically? The manipulator first creates hype—repeatedly placing orders and fabricating stories to attract retail investors’ attention, guiding them to open large positions on the futures side, often stacking leveraged long positions unilaterally. This stage appears "normal," and the token price also rises. But the turning point comes—when the spot market suddenly surges or crashes, the mark price quickly crosses key levels, triggering massive leveraged liquidations at the bottom. Retail investors get liquidated and wiped out, while the manipulator profits through pre-positioned short or spot reverse operations.

This combination is effective mainly due to information asymmetry and flaws in mechanism design. Low liquidity means there are not enough market participants to stabilize the price, and since the mark price of perpetual contracts is anchored to the spot, sharp fluctuations in the spot price cause the liquidation effects to cascade. For ordinary traders, engaging in leveraged trading on such tokens carries much higher risks compared to mainstream cryptocurrencies.