{"id":94735,"date":"2026-02-26T14:25:55","date_gmt":"2026-02-26T11:25:55","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=94735"},"modified":"2026-02-26T14:30:20","modified_gmt":"2026-02-26T11:30:20","slug":"major-trader-loses-8-2-million-on-arc-token-deal","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/major-trader-loses-8-2-million-on-arc-token-deal\/","title":{"rendered":"Major Trader Loses $8.2 Million on ARC Token Deal"},"content":{"rendered":"<p>A major trader lost $8.2 million on the Lighter exchange following the collapse of a margin position on perpetual contracts for the ARC token.<\/p>\n<p>The incident forced the platform to deploy reserve liquidity and activate the auto-deleveraging (<a href=\"https:\/\/forklog.com\/en\/news\/whales-adl-and-the-end-of-the-bull-what-really-happened-on-cryptos-black-saturday-2\">ADL<\/a>) mechanism.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">We had the first battle test of LLP Strategies in the last several hours. TLDR: it worked as expected and protected LLP holders as well as traders. Deep dive in this thread.<\/p>\n<p>\u2014 Lighter (@Lighter_xyz) <a href=\"https:\/\/twitter.com\/Lighter_xyz\/status\/2026823829260054705?ref_src=twsrc%5Etfw\">February 26, 2026<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>According to the platform, the whale had been increasing a long position for several days, bringing the total open interest in the coin to $50 million. About 600 traders and <a href=\"https:\/\/forklog.com\/en\/news\/what-is-a-market-maker\">market makers<\/a> took the opposite side, opening short positions.<\/p>\n<p>The situation escalated when the price of ARC sharply declined. Positions worth about $2 million were liquidated directly in the exchange&#8217;s order book. The remaining volume was transferred to the Lighter liquidity pool (LLP), where it was processed under a high-risk strategy.<\/p>\n<p>To resolve the issue, the platform activated ADL: some profitable shorts were forcibly closed, allowing the system to safely unwind the whale&#8217;s losing position.<\/p>\n<p>At its peak, the LLP briefly absorbed about 200 million ARC ($14.7 million), after which the position continued to decrease as prices fell further.<\/p>\n<h2 class=\"wp-block-heading\">Risk Limits<\/h2>\n<p>Despite the large-scale liquidation, losses for liquidity providers were minimal, amounting to only about $75,000.<\/p>\n<p>Lighter explained that ARC trading occurred in an isolated environment, so the incident did not affect the exchange&#8217;s main liquidity pool. Short traders who held positions against the whale remained profitable.<\/p>\n<figure class=\"wp-block-image size-full\"><img decoding=\"async\" src=\"https:\/\/forklog.com\/wp-content\/uploads\/img-906540ebdbc1fe22-7321410855371203.webp\" alt=\"image\" class=\"wp-image-275847\"\/><figcaption class=\"wp-element-caption\">Source: X\/Lighter.<\/figcaption><\/figure>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>&#8220;In the end, the major trader lost about 8.2 million <\/em><a href=\"https:\/\/forklog.com\/en\/news\/what-is-the-usdc-stablecoin\"><em>USDC<\/em><\/a><em>, LLP lost $75,000, and short traders who dared to go against this position ended up in the black,&#8221; concluded the <\/em><a href=\"https:\/\/forklog.com\/en\/news\/what-is-a-decentralised-exchange-dex\"><em>DEX<\/em><\/a><em> team.<\/em><\/p>\n<\/blockquote>\n<p>Following the incident, Lighter introduced additional restrictions on the ARC market. In a pop-up notification on the website, the platform announced a limit on open interest of $40 million.<\/p>\n<p>The pair was also moved under a limited liquidity strategy with allocated capital of about $100,000 in USDC. If this volume is exhausted, the system will automatically switch to ADL to close risks.<\/p>\n<p>Developers added that similar limits could be introduced for other assets.<\/p>\n<p>Back in November, the Hyperliquid exchange <a href=\"https:\/\/forklog.com\/en\/news\/hyperliquid-halts-transactions-amid-meme-coin-manipulation-concerns\">suspended<\/a> deposits and withdrawals amid suspicions of price manipulation of the meme coin POPCAT.<\/p>\n<p>At that time, one trader opened a $30 million long through 19 wallets. His actions triggered mass liquidations and caused $4.9 million in damage to the platform&#8217;s liquidity pool.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>A major trader lost $8.2 million on the Lighter exchange following the collapse of a margin position on perpetual contracts for the ARC token.<\/p>\n","protected":false},"author":1,"featured_media":94736,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"Major trader loses $8.2 million on ARC token deal.","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[1267,787,1156],"class_list":["post-94735","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-cryptocurrency-trading","tag-dex","tag-institutional-investors-and-whales"],"aioseo_notices":[],"amp_enabled":true,"views":"180","promo_type":"1","layout_type":"1","short_excerpt":"Major trader loses $8.2 million on ARC token deal.","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/94735","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=94735"}],"version-history":[{"count":1,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/94735\/revisions"}],"predecessor-version":[{"id":94737,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/94735\/revisions\/94737"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/94736"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=94735"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=94735"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=94735"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}