| What to Know: – Whale’s leveraged ARC perps on Lighter liquidated, incurring about $8.2M losses. – Around 600 short-side counterparties profited as the cascade progressed. – Lighter’s LLP design contained systemic risk, preserving orderly execution amid thin liquidity. |
As reported by Cointelegraph, a large crypto trader’s leveraged ARC perpetuals position on Lighter unraveled, resulting in roughly $8.2 million in realized losses. The unwind occurred during a rapid drawdown that triggered liquidation processes across the venue.
CryptoTimes noted that around 600 counterparties on the short side profited as the cascade progressed, while Lighter’s LLP design limited broader platform risk. The platform maintained orderly execution despite thin liquidity conditions flagged by coverage.
PANews reported that Lighter labeled the episode the first live test of its LLP Strategies during a large-scale long liquidation. In Lighter’s terminology, the LLP is a pooled market-making vault segmented into risk buckets to isolate exposure. Auto-deleveraging, or ADL, can reduce profitable opposing positions when residual exposure exceeds predefined limits.
TechFlowPost’s outline of the sequence indicates an initial attempt to fill liquidation orders on the public book, followed by isolation of remaining exposure in the LLP’s high-risk bucket, and an ADL phase if bucket capacity is exhausted. This sequence is intended to cap LP drawdowns while settling liabilities to winning traders. The ARC event followed that path.
“LLP Strategies performed as designed under real-world stress, isolating risk and protecting LPs,” said Lighter, in an official post.
At the time of this writing, indicative ARC metrics show a spot-equivalent price near $0.00003081 with a 14-day RSI around 43.78 and elevated volatility. No statements from financial regulators have been published specific to this event. Comparisons to centralized or alternative decentralized venues, including Hyperliquid, remain analytical rather than official assessments.
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