I just came across an interesting market event: the ARC perpetual contract on Lighter experienced a major fluctuation yesterday. A whale accumulated a large ARC long position over a few days, only to be squeezed out by about 600 retail traders and market makers' short positions, resulting in the whale losing approximately $8.2 million. This incident also tested the newly launched LLP strategy system on Lighter.

According to Lighter's official statement, ARC's perpetual trading was allocated to a high-risk strategy pool with only $75,000 USDC allocated. When the ARC price started to decline, the whale's long positions were first liquidated for around $2 million. Later, as the price continued to fall to 0.071, automatic deleveraging was triggered. Ultimately, the LLP's losses were capped at that $75,000 limit. This is a key feature of Lighter's new system—risk is isolated at the individual strategy level rather than across the entire liquidity pool.

At that time, ARC's price performance was indeed disastrous, plunging from $0.031 to as low as $0.025. It later rebounded to $0.0348, but the event left clear marks. Some crypto commentators pointed out that ARC dropped 80% overnight, with trading volume approaching $400 million—almost ten times its fully diluted valuation—suggesting possible manipulation. This also sparked discussions about market integrity.

Looking at ARC now, some time has passed since that event. The current price is around $0.06. Although it has fallen over 90% from its all-time high of $0.62, ARC has recently shown some rebound. Overall, this incident served as a real test of Lighter's new strategy system, and it appears that the risk isolation design is effective.