The crypto market suddenly erupted in chaos late at night. An obscure Token, MMT, skyrocketed from $0.3 to $10 in just a few hours, a rise of over 1500%, while at the same time, $127 million in Position vanished in an instant—of which 90% were short positions.

The massacre was so precise that a chilling rumor began to circulate in the market: insiders from a centralized exchange provided sensitive data such as the margin rates and liquidation prices of large short positions directly to MMT's market maker, Amber Group.

**Timeline Restoration: A Textbook-style Short Squeeze**

The cause of the matter can be traced back to the Token economic design of MMT. The project party intentionally delayed the airdrop release, compressing the circulating supply to 2% of the total amount, creating an extremely scarce liquidity environment. In this situation, any large buy orders can cause a huge stir.

The late-night pump came without warning. The price surged vertically in a short period of time, and the marked price on a certain exchange was severely disconnected from the spot price, with the spread at one point being outrageously large. Those short position traders using even 1x leverage watched helplessly as their accounts were forcibly liquidated. Some publicly admitted on social platforms to losses of millions of dollars, while many retail investors were left without the strength even to speak up.

**Data speaks**

According to the data compiled by Coinglass on November 5:
- Total liquidation amount: $127 million
- short positions liquidation: $114 million (90% share)
- Long positions liquidation: 0.13 million USD (accounting for 10%)

The market capitalization of MMT once surged to 4 billion USD, and then fell back to 1.8 billion USD. Even though leading platforms and Upbit have successively listed this Token, the liquidity trap has still not been resolved.

**Not the first time, nor will it be the last time**

Similar accusations have not been made for the first time. In 2023, the investment firm Spartan Group publicly criticized a mainstream exchange, claiming that it indiscriminately leaked its short positions information to "industry contacts," ultimately leading to the termination of their cooperation.

Although exchanges today have strengthened their log management and internal controls, there are always those willing to take risks in the face of profit. Once core data falls into the hands of market makers, coupled with low circulation and low trading volume during late night hours, short positions are almost an inevitable outcome.

**Truth or Rumor?**

It must be stated that all current claims regarding "data leakage" remain at the rumor level, with no party providing solid evidence. It is a public fact that Amber Group acts as an MMT market maker, but whether it has truly obtained internal data and whether there is precise targeting still requires more evidence to support.

But for ordinary traders, the truth may not be important. What matters is that this market has never lacked information warfare and the invisible hand. Going all in and using high leverage to short positions is no different from suicide in such an environment.

Even if you only use 1x leverage, you may still lose everything in extreme market conditions. Hedging? In times of liquidity exhaustion, hedging itself is a joke.

How this turmoil will ultimately end is still unknown, but it once again reminds everyone: in the crypto market, you never know what cards the opposing traders are holding.