On the evening of June 16, two tokens launched on the Alpha platform—KOGE and ZKJ—both experienced a flash crash within a short time, with the maximum decline approaching 85%. However, this crash was not a sudden black swan event, but rather a premeditated and rhythmic 'precise harvesting'.
(K-line source: BN, WEEX)
Precise timing: first hit KOGE, then clear ZKJ.
WEEX community users believe that KOGE's flash crash before ZKJ was due to operational efficiency considerations. ZKJ has a contract mechanism, allowing attackers to open short positions on exchanges and simultaneously dump on-chain, achieving profits in both directions; whereas KOGE itself has lower liquidity and a stable price, initially testing the waters here is beneficial for gauging market sentiment and depth feedback, while also facilitating 'LP exit'.
Similar views were also expressed in WEEX exchange community discussions, indicating that this 'staggered dumping' helps to mask the initial withdrawal motives while provoking panic behavior from liquidity providers (LPs), thus triggering a chain reaction.
Structural risks behind the flash crash
From the K-line chart, this liquidity exit action was simultaneously initiated around 20:30 Beijing time, while the flash crash trend showed a delay. This delay was due to KOGE and ZKJ originally having ample liquidity and extremely narrow trading ranges, and the sudden LP exit caused the coin price to directly penetrate the stable price zone.
LP's panic withdrawal led to a lack of buying pressure, causing the coin price to collapse naturally. Late LPs became 'stuck' due to the price drop, trapped in a situation where they could not withdraw.
On the WEEX blog forum, a user summarized: 'This is not just a single user's operational accident, but a 'timed explosion' orchestrated by the project team utilizing the LP unlocking window.'
Choosing tonight is because the timing is right.
On-chain data shows that holders of KOGE and ZKJ are mostly 'interest-type' users who lack long-term faith in the project itself. Meanwhile, the continuous decline in Alpha's trading volume provided a perfect cover for offloading—quietly laying out positions when no one is paying attention, and once the lock-up period expires, immediately liquidating and fleeing.
Similar methods are actually common in the crypto industry. Observations in the WEEX community also pointed out that in recent months, several small-cap coins have seen large withdrawals and abnormal market conditions around LP unlocking windows, with 'precise retreats' becoming a fixed strategy.
What can we learn from this 'exit'?
Although the official has not yet spoken out, the incident involving ZKJ and KOGE already exhibits typical characteristics of an exit scheme: prior ambush, large unlocks, synchronized dumping, and LP clearing. This is not a technical issue or a market misfire, but a long-planned capital cleansing.
Of course, this incident reminds us again: not all exits come with a 'fraud' label; more often, they hide behind white papers, annual interest rates, and LP incentives.
A record from a WEEX community user revealed that the liquidity withdrawal caused a run on the LP, leading to an inability to exchange normally.