Manages $50M in ARC Perpetual Volume

Lighter reported that its improved liquidity pool system has successfully limited ADL’s losses to a predetermined limit.

On February 26th, Lighter, a decentralized crypto exchange, announced that its enhanced liquidity pool system successfully resisted ARC’s $50 million nonstop bid.

This happened after nearly 600 traders reversed the whale position, resulting in a loss of $8.2 million, and the episode examined Lighter’s newly introduced LLP strategies, which risked the negative side of the funders for just $75,000.

LLP Strategies for Dealing with a First Stress Event

In a February 17 post on X, Lighter announced changes to its LLP infrastructure, splitting liquidity into different strategies for different types of markets, including RWAs. Risk, liquidation, and automated transfers are now handled at a strategic level instead of just for fun.

That structure faced what the platform called “the first test of the war” on February 26. According to Lighter, the trader built a large long position in ARC that continued within a few days, and some 600 traders and market makers took the short side and pushed the total open interest to $ 50 million.

ARC perp’s trade is assigned to Strategy #7, a high risk strategy with $75,000 in USDC allocated. Lighter said this meant that only part of the LLP’s deposit could be disclosed in the event of an automatic transfer.

As the price of ARC dropped around 6 pm ET on February 26, a large long position began to be liquidated from the order book by about $2 million. Lighter said that LLP was initially profitable in this position, but some eliminated Strategy #7, which created another ADL at 0.071123. In the end, the whale lost about $8.2 million, the LLP lost its share of $75,000, and the short sellers who held their positions profited.

ARC Price Drops

The break left visible scars on the ARC price chart, with data from CoinGecko showing the token suffered a flash crash in the early hours of February 27, from around $0.031 to $0.025 before recovering to $0.0348.

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At the time of writing, ARC, which powers Ryzome agetic’s “app store,” is down more than 9% in 24 hours and nearly 59% in seven days. The token also lost more than 63% of its value in the past two weeks, and a 42% fall in 30 days. It currently sits 95% below its January 2025 all-time high of $0.62, having shed nearly 88% of its value over the past year.

The upheaval is in line with the observations of crypto analyst Simon Dedic, who noted that ARC’s value has sunk overnight by nearly 80% to volumes approaching $400 million, nearly ten times its fully diluted valuation.

Dedic pointed out that before the dump, the token was “performing very well” despite the weak market, even suggesting that it was “overused.”

The concerns expressed by Dedic echo the broader industry debate about market integrity. Just last month, Base founder Jesse Pollak rejected the idea of ​​behind-the-scenes manipulation, saying his group would not pool or spend money to influence prices because markets “deserve to be free, open and fair.”