MYX Finance's 400x "traffic business strategy" in two months: a "coincidental" double explosion of long and short positions.

Original Title: MYX Finance's “Traffic Business Strategy” 400 times in two months: A “coincidental” deadly showdown of long and short positions.

Original Author: Agintender

Reprint: Mars Finance, Daisy

MYX leverages exaggerated price surges as a gimmick to capture the traffic positions of various media and data platforms, enticing all eager warriors to invest their hard-earned money and contributing to a spectacular liquidation. MYX is like a powder keg, with the trigger in the hands of large players, leaving you with no way back regardless of the market direction. The market is not lacking in opportunities; it is only missing the “survivorship bias” of those willing to take risks.

Statement: This article strongly advises against participating in such abnormal trading. This article is not directed at anyone or any project, but is merely for academic analysis purposes, to help more people understand the phenomenon and the reasons behind it, and to comprehend the underlying mechanisms.

Part One: MYX Price Explosion: Quantitative Overview

1.1 Depicting Parabolic Trajectory

The price trend of the MYX token exhibits a typical parabolic shape, with extreme levels of speed and amplitude achieved in the short term. Analyzing the timeline of this process reveals its astonishing growth trajectory:

The token price started to rise from a historical low of about $0.047 in June 2025.

In the first significant surge in August 2025, the price reached a local high of $2.49 on August 8.

Subsequently, in September 2025, a more explosive uptrend began. Within just seven days, the price skyrocketed by over 1132%, reaching a historic high of over $17. On September 9 alone, the price increase exceeded 291% in just one day.

1.2 Trading Volume and Market Capitalization Dynamics

Accompanied by the surge in prices, trading volume and market capitalization have also experienced explosive growth, reflecting the rapid influx of market attention and speculative capital.

Surge in trading volume: Driven by the narrative of the MYX Finance V2 upgrade (which may just be a rationalization “pretext”), the spot trading volume on September 7-8 skyrocketed, increasing by more than 710% to reach $354 million. During the subsequent price peak, this figure climbed to an astonishing $880 million. Such a massive trading volume indicates extreme market exuberance, with a large amount of speculative capital involved.

Market Capitalization Expansion: In the rise during August, the market capitalization of MYX has exceeded 300 million USD. By September 8/9, its market capitalization further inflated to over 3.5 billion USD, once ranking among the top 35 in global cryptocurrency market capitalization.

1.3 Technical Indicators of an Overheated Market

The technical indicators clearly show that the market has entered an extremely overbought and irrational state, which is a signal of very high risk for a price pullback.

Relative Strength Index (RSI): RSI is a key indicator for measuring market momentum and overbought/oversold conditions. In this recent surge, MYX's 14-day RSI reached 96.21, while the 7-day RSI even reached an unprecedented 98.06. Generally, an RSI value above 70 is considered to be in the overbought zone; a value exceeding 95 indicates that the market has entered a statistically unsustainable speculative frenzy, which almost invariably signals an impending sharp correction.

The interaction between price and trading volume creates a powerful positive feedback loop. The initial price increase is likely driven by concentrated and coordinated buying, successfully attracting initial market attention. As the price climbs, the percentage increase in trading volume displayed on major exchanges and data aggregation platforms is enormous, providing material for cryptocurrency news media and social media influencers.

The reporting and dissemination of these astonishing data by media, KOLs, data platforms, etc. (this article is one of them) quickly created a social consensus on “hot tokens” and triggered retail investors' FOMO (similar to the trading of large whale traders on HL, a promotional effect stemming from “large orders”). This process is self-reinforcing, forming a parabolic upward trajectory. More importantly, this influx of funds driven by retail investors provided the necessary massive liquidity for early insiders and controllers to distribute their held tokens at high prices.

Part Two: Beneath the Surface: On-Chain Evidence and Market Manipulation Indicators

The surge in MYX's price is not merely a result of market enthusiasm, but rather a culmination of a series of carefully orchestrated events.

2.1 The Engine of Surge: Intense Derivatives Short Squeeze

The derivatives market is the main battlefield and core engine of this price explosion.

Key data: According to Coinglass, a large-scale liquidation event occurred in the market on September 8. The total liquidation amount reached 14.63 million USD, of which as much as 11 million USD came from the liquidation of short positions.

Mechanism Analysis: When the price of MYX is driven up and breaks through key technical resistance levels (such as $3.69), it triggers a large number of short positions to be forcibly liquidated. These liquidated short traders must buy MYX on the market to cover their positions, which instantly creates enormous, involuntary buying pressure. This cascading forced buying forms a vicious cycle that further drives up the price, thereby liquidating more short positions at higher price levels. The up to 50 times leverage provided by MYX perpetual contracts amplifies this effect, making the price highly sensitive to small fluctuations.

Catalytic factors: Binance's adjustment of the funding rate settlement frequency for MYX perpetual contracts (changed to once every hour) has further exacerbated the predicament for short sellers. More frequent funding rate settlements mean increased costs and uncertainty for holding short positions, effectively trapping short traders in losing positions and making them more susceptible to price surges.

2.2 Doubts: Precise Timing of Token Unlocking and VC Sell-offs

If short squeezes are the engine of a rise, then the timing of token unlock events reveals the “timing” of this rise. (What a clever move to take advantage of the market's perception that unlocking leads to a decline.)

Event Overlap: The peak price period perfectly coincides with a significant token unlocking event. This unlocking released 39 million MYX tokens into the market, accounting for 3.9% of the total supply. For a token with a relatively small circulating supply, this is a massive supply shock.

On-chain evidence: After the token unlock, on-chain data tracking shows that the well-known venture capital firm Hack VC transferred 835,000 MYX to the MEXC exchange, which is a clear signal in preparation for a large-scale sale.

History repeats itself: This is not an isolated incident. In August, following a similar token unlocking event, the price of MYX plummeted by 58%. This indicates that the market has formed a clear pattern: token unlocking is a window for early investors and insiders to cash out and exert significant selling pressure on the market, as well as a consensus in the market that the token is likely to “drop significantly.”

2.3 Allegations of Collusion and Wash Trading

Danger signals from analysts: Analyst Dominic on X provided a detailed analysis, pointing out several danger signals indicating market manipulation: (

Disproportionate trading volume: The daily perpetual contract trading volume of MYX suddenly soared to between 6 billion and 9 billion USD. This figure is completely illogical for a token with a market capitalization and liquidity scale far smaller than this, suggesting a large amount of non-genuine trading activity.

Collaborative trading patterns: Identical, programmatic trading patterns have been observed across multiple exchanges such as Bitget, PancakeSwap, and Binance. This cross-platform synchronous behavior is highly unlikely to be spontaneously formed by a large number of independent market participants, but rather seems to be controlled by a single entity or a group acting collaboratively through trading bots.

On-chain fund aggregation: On-chain data shows that a large number of small buy orders' funds are ultimately aggregated into a centralized wallet address. This is a typical manipulation technique used to conceal the true intentions and scale of funds of a single large player.

Wash trading creates false trading activity. Its purpose is to artificially inflate trading volume, attracting retail investors who view high trading volume as a signal of market health and good liquidity. Once retail investors are drawn in, manipulators can sell the tokens they hold at high prices to them, completing the harvest. The various signs observed in the MYX incident closely match the typical characteristics of wash trading.

Part Three: Analysis of the “Killing Move”: A Strategic Review

The core logic of this event: “A deadly game under high-controlled spot market.” This is not just a simple market frenzy, but a meticulously planned and interconnected capital operation. Its strategy can be broken down into the following steps:

3.1 Step One: Establishing the Foundation - Highly Concentrated Spot Control ( High Control )

Low circulation and high internal holdings: MYX has a total supply of 1 billion tokens, but during peak price periods, the circulating supply is only about 197 million tokens, which is less than 20% of the total. According to the token distribution plan, core contributors (20%) and investors (17.5%) together hold 37.5% of the total supply. Most of these tokens are in long-term lock-up, which means that at any specific point in time, there are very few “floating chips” that can be freely traded in the market.

Advantages of controlling the market: This low liquidity, high concentration structure creates perfect conditions for price manipulation. When the vast majority of tokens are controlled by a few entities, they only need relatively small amounts of capital to create huge price fluctuations in the spot market, paving the way for subsequent operations in the futures market.

3.2 Step Two: Start the Engine - Leverage Spot to Manipulate Contracts ( Price Manipulation )

Large holders leverage their control over the spot market to turn the derivatives market into a core battlefield for harvesting opponents.

Creating a short squeeze: This is the core mechanism of this manipulation. By driving up prices in the spot market, manipulators can precisely raise the mark price of perpetual contracts, causing it to break through key technical levels (such as $3.69). This action triggers a chain reaction: a large number of short positions are forcibly liquidated due to insufficient margin. These liquidated shorts must buy MYX in the market to cover their positions, thus creating a massive, involuntary buying pressure that further pushes the price higher.

Amazing liquidation data: On September 8th, a total of $14.63 million was liquidated across the network, with over $11 million coming from liquidated short positions. This clearly indicates that one of the main purposes of raising spot prices is to precisely “hunt” shorts in the contract market.

3.3 Step Three: Expand the Victory - Using “Pump” as Marketing ( to Attract Competitors )

The wildly soaring “marketing effect” is a crucial part of this strategy. Raising the coin price to the sky is, in itself, the most effective marketing tactic.

Creating FOMO: In just 8 days (from September 1 to 8), there was an increase of over 1132%, and on September 9, it briefly entered the top 35 of CMC's global market cap, quickly attracting the attention of the entire market. This parabolic rise spread through major media and social platforms, creating a strong sense of FOMO among retail investors.

Attracting new counterparties: This extreme market sentiment has successfully attracted a large number of new traders to enter the market. Traders attracted by rising prices will open long positions to chase the gains, while those drawn in by high funding rates and expectations of a pullback will open short positions. Regardless of the direction, they become the “counterparties” that manipulators need, providing depth and liquidity to the market, and preparing for the next stage of harvesting.

3.4 Step Four: Final Goal - Selling High and Harvesting ( Liquidation Long and Short )

The carefully planned pump clearly aims to create exit opportunities for those in the know and to harvest the market in both directions.

Perfect synchronization with token unlocks: The peak price astonishingly coincides with the unlocking event of 39 million MYX tokens. The pump behavior creates a perfect window of ample liquidity and consistent bearish direction.

On-chain evidence: The well-known venture capital firm Hack VC immediately transferred approximately $2.15 million worth of MYX tokens to the exchange after the token unlock. This indicates that retail investors have become the “exit liquidity” for insiders. Or is this a “bearish” act staged for retail investors and analysts?

Two-way harvesting: The goal of this game is to take advantage of both long and short positions.

During the upward pull, by triggering a short squeeze, the shorts were harvested. The opposite is also true.

After completing the spot distribution at the price peak, manipulators can short the market. As they stop supporting the price and begin to sell off, the price will inevitably plummet (as the unlock in August previously caused a 58% drop), at which point those bullish positions that chased the price at the top will be completely liquidated. Regardless of long or short positions, the explosive trigger (spot) is in the hands of others, and whether it results in liquidation or profit will depend on the mercy of others.

In summary, the surge of MYX is not a natural response from the market to its technology or fundamentals, but rather a “killing move” played out in the derivatives market by leveraging highly concentrated spot control and spot prices. The core objective is to attract a large number of traders to become counterparties by creating a sensational marketing effect, thereby achieving precise liquidation of short positions and creating an ideal liquidity environment for interested parties to sell newly unlocked tokens at high prices, ultimately completing a two-way harvesting of the market.

Part Four: Conclusion

These seemingly independent events—the V2 new product narrative, short squeeze, token unlock, and wash trading accusations—are actually part of a carefully orchestrated overall strategy. First, those with ulterior motives anticipated the date for the unlocking of 39 million tokens. To sell at the highest price during this period, they needed to create enormous market demand in advance. Thus, they heavily promoted the V2 upgrade narrative through official channels and social media, providing a “fundamental” rationale for the upcoming price increase. Next, these individuals might have used trading bots to engage in wash trading across major exchanges, creating the illusion of active trading volume and slowly pushing up the price. When the price rise attracts the first batch of shorts, the trap is set.

Subsequently, the manipulators injected a crucial amount of capital, violently pushing the price above the critical liquidation line, thereby triggering a massive short squeeze. At this point, the buy orders generated by the forcibly liquidated shorts became the main fuel for the parabolic rise in price, and the manipulators themselves no longer needed to inject large amounts of capital. Finally, on the day when the price peaked, market FOMO sentiment was at its highest, and it was also the day of token unlocking, they obtained their long-desired exit window: a very high selling price and a large buying group composed of numerous retail investors. The newly unlocked 39 million tokens flooded the market, while retail investors unfortunately became their “exit liquidity.”

May we always hold a heart that reveres the market.