Yesterday, the meme coin Light experienced a "Rug Pull flash crash," plummeting from $4.8 to $0.8 in just one hour, which is attributed to structural vulnerabilities in the Perptual Futures and AMM.

The Light project team holds most of the spot supply, only putting a very small portion into the market, and chooses small exchanges or DEXs to pump the price, such as PancakeSwap. The actual circulating spot might only be at the million dollar level. At the same time, they lock up the spot with high APR to make liquidity "thinner," and then use the AMM pricing mechanism to manipulate large prices with small pools.

The size of the contract market is more than 20 times that of the spot market. Project parties can control the spot market with extremely low costs, allowing them to manipulate the contract anchoring price. Perptual Futures have no delivery date, with funding rates settled frequently; holding positions against the trend incurs extremely high costs, and the principal could be lost in just two days.

Traditional finance has regulation and a safety net, which can curb extreme manipulation, but the crypto market's Perptual Futures have no expiration date, high leverage, and little regulation. Retail investors find it hard to defeat low-cost manipulators in this game, almost always ending up being the last ones to buy in. While there are opportunities in the market, everyone needs to operate calmly. Musen will continue to monitor on-chain dynamics and announce entry times and news in the village, aiming to earn steadily together!