VELVET just had an insane move from around $0.91 to $0.1756, an almost 81% drop.
I don’t see evidence of a token unlock or hack explaining this move. The structure looks much more like a liquidity and leverage event.
The interesting part is the thin order book. Once the initial selling started, leveraged longs could have been liquidated, creating forced selling and triggering more liquidations. That can create a cascade where the amount of futures exposure being closed is far larger than the actual spot liquidity available.
Funding is now around -0.1857%, showing how extreme the positioning has become after the crash.
The key question is still: what caused the first sell? Was it spot selling, aggressive futures selling, or a price/liquidity dislocation that triggered the liquidation cascade?
An 80% candle doesn’t necessarily mean 80% of the supply was sold. In a thin, highly leveraged market, a relatively small initial imbalance can cause a massive move.
This one is worth watching closely.
I don’t see evidence of a token unlock or hack explaining this move. The structure looks much more like a liquidity and leverage event.
The interesting part is the thin order book. Once the initial selling started, leveraged longs could have been liquidated, creating forced selling and triggering more liquidations. That can create a cascade where the amount of futures exposure being closed is far larger than the actual spot liquidity available.
Funding is now around -0.1857%, showing how extreme the positioning has become after the crash.
The key question is still: what caused the first sell? Was it spot selling, aggressive futures selling, or a price/liquidity dislocation that triggered the liquidation cascade?
An 80% candle doesn’t necessarily mean 80% of the supply was sold. In a thin, highly leveraged market, a relatively small initial imbalance can cause a massive move.
This one is worth watching closely.