Lighter's ARC rate has abnormally surged to an annualized 2100%, with a large whale heavily longing to lure short sellers in.
PANews reported on February 25th that, according to Route2FI analysis, a whale is holding a total of $24 million in long ARC positions on Lighter, and is continuously injecting $360,000 per hour through TWAP (time-weighted buy), driving the bullish trend. The whale has already made a profit of $5 million.
Analysis indicates that this whale's behavior is similar to the JellyJelly price manipulation incident on Hyperliquid. In March 2025, a whale on Hyperliquid simultaneously shorted the JellyJelly perpetual contract with large sums while manipulating the spot price through other accounts and on-chain mechanisms, causing short sellers to be liquidated. Hyperliquid's liquidity pool (HLP) suffered losses after settlement, prompting the Hyperliquid team to urgently delist the contract through a governance vote and force settlement at an extremely low price. Currently, the annualized funding rate for ARC contracts on Lighter has surged to 2100%, equivalent to short sellers earning approximately 5.7% in funding fees daily, which will attract more short sellers, intensifying the battle between bulls and bears.
You May Also Like
Ethereum unveils roadmap focusing on scaling, interoperability, and security at Japan Dev Conference
Range top holds as headlines steer trade – ING
