A big crypto dealer misplaced about $8.2 million on a leveraged lengthy within the ARC perpetuals market on decentralized derivatives venue Lighter after ARC slid round 6:00 pm ET Wednesday, a report mentioned, citing posts from the platform.
We had the primary battle take a look at of LLP Methods within the final a number of hours. TLDR: it labored as anticipated and guarded LLP holders in addition to merchants. Deep dive on this thread.
— Lighter (@Lighter_xyz) February 26, 2026
The dealer constructed the place over a number of days, pushing ARC open curiosity to roughly $50 million whereas about 600 merchants and market makers took the opposite facet. When the commerce began to interrupt, about $2 million was liquidated on the order ebook and the rest was shifted into Lighter’s liquidity supplier pool (LLP) underneath a high-risk technique bucket. Lighter mentioned it then activated auto-deleveraging (ADL), partially closing worthwhile shorts to unwind publicity. At one level, the LLP briefly held about 200 million ARC, valued at $14.7 million, earlier than the place was lowered additional, with LP losses restricted to about $75,000.
Lighter mentioned it has since added guardrails, together with a $40 million open curiosity cap on ARC and a capped-liquidity technique with about $100,000 USDC allotted, with the system set to transition to ADL if that liquidity is exhausted. Stakeholders will watch whether or not comparable caps roll out to different markets and whether or not a autopsy tightens threat controls.
Supply: Lighter (X).
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