NEWS Today :-
Analysts Highlight Possible Triggers
Meanwhile, Vladislav, a crypto analyst, observed that Wintermute had been offloading assets from wallets where they previously acted as market makers. He suggested that either the firm had suffered a hack or something else was wrong.
Further analysis from Lookonchain, a blockchain surveillance resource, confirmed that Binance had recently adjusted the leverage and margin tiers for specific tokens, including ACT.
This led to a massive liquidation of a whale’s position, amounting to $3.79 million at a price of $0.1877. Following this event, ACT’s price continued to plunge by more than 50%, signaling a cascading effect in the market.
Further, Wu called attention to disclosures from Benson Sun, a former FTX community partner, which corroborated Lookonchain’s analysis. According to Sun, the primary catalyst behind the crash was Binance’s decision to revise the leverage position limits on ACT.
The new rules imposed a restriction where traders using 1x leverage could only open positions up to $4.5 million. As a result, several market makers who had exceeded this threshold saw their positions forcibly closed at market prices.
Notably, this abrupt liquidation led to a sharp contract price drop, which in turn created a significant disparity between the contract price and the spot price, ultimately triggering a sell-off.
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