Lighter responds to a whale's failed long attack on ARC: LLP risk control mechanism is functioning as expected, with a loss cap locked at 75,000 USDC

DeepFlowTech · 2026-02-26T04:16:27+00:00

Decentralized derivatives platform Lighter responds to whale's failed long attack on ARC. LLP Strategies' first practical test shows the system is operating as expected, effectively protecting the interests of LLP holders and traders. Large long traders lost 8.2 million USDC, while LLP losses were only 75,000 USDC, demonstrating risk isolation and loss control capabilities.

DeepFlowTech

2026-02-26 04:16:27

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Deep Tide TechFlow reports that on February 26, the decentralized derivatives platform Lighter posted on X platform in response to a whale attempting to attack by going long on ARC and failing. The liquidity pool LLP Strategies mechanism experienced its first real-world test in the past few hours, showing that the system operated as expected, protecting LLP holders and ensuring traders’ interests. A trader opened a very large long position on the ARC perpetual contract relative to the market size, with approximately 600 other traders and market makers taking opposing positions on the platform. The open interest eventually reached 50 million USDC.

It is reported that LLP Strategies limits downside risk through “strategy isolation” while preserving upside potential during price rebounds. Ultimately, this large long trader lost about 8.2 million USDC, with LLP losses capped at 75,000 USDC. The risk-bearing short traders made profits. Lighter stated that this incident verified LLP Strategies’ ability to isolate risk and cap losses under extreme market conditions.

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