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

Odaily Planet Daily reports that decentralized derivatives platform Lighter responded on X platform to a whale’s failed attempt to attack ARC through long positions. The LLP Strategies mechanism in the liquidity pool experienced its first real-world test in recent 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 about 600 other traders and market makers taking opposing positions on the platform. The open interest eventually reached 50 million USDC. LLP Strategies limited downside risk through “strategy isolation” while maintaining upside potential during price rebounds. The large long trader lost approximately 8.2 million USDC, LLP losses were capped at 75,000 USDC, and the risk-bearing short traders made profits. Lighter stated that this event validated LLP Strategies’ ability to isolate risk and cap losses under extreme market conditions.