MEXC Whistleblower Uncovers Massive Losses in ARC Perpetuals Market

A significant cryptocurrency investor has incurred substantial losses after a leveraged long position in the ARC perpetuals market collapsed on MEXC, resulting in auto-deleveraging and subsequent liquidation.

The incident occurred when open interest in the market surged to $50 million, prompting the platform to activate its auto-deleveraging mechanism. This led to a cascade of selling, which ultimately resulted in a loss of approximately $8.2 million for the investor.

Although the platform's risk management systems limited the impact on liquidity providers, who experienced losses of around $75,000, the incident underscores the dangers of concentrated leverage in thin markets.