Has the 10 a.m. Dump Really Ended Due to Market Maker Legal Pressure?

The crypto market has seen some strange recurring patterns in recent months, and one of the most noticeable was the daily sell-off that often hit right around 10 a.m. New York time. For a while, prices would climb a little in the early hours, then drop sharply—sometimes 3-5% or more—in what felt like coordinated pressure. Traders were speculating about big players or market makers behind it, especially after news broke about a major lawsuit involving Jane Street.
The case stems from allegations tied to the 2022 Terra collapse. The lawsuit claims insider trading and manipulation of liquidity during key moments, allowing certain parties to exit positions profitably while others suffered heavy losses. Shortly after the details became public in late February 2026, that familiar 10 a.m. dump pattern disappeared almost overnight. Instead of the usual afternoon fade, prices held steady or even pushed higher through that window. On February 25 and 26, the market showed real strength without the routine pressure.
Could legal pressure actually be the cause? It seems plausible. When a high-profile firm faces serious allegations—including demands for damages and disgorgement—along with regulatory scrutiny from multiple jurisdictions, aggressive trading tactics might get dialed back temporarily to avoid escalating the situation. Similar enforcement actions in other markets have led to quieter behavior from involved parties in the past.
That said, markets are never simple. The timing could also coincide with other factors: heavy short squeezes, renewed institutional buying through ETFs, and positive sentiment from strong corporate earnings in tech and finance sectors. The 10 a.m. window might have been driven by algorithmic liquidity grabs or whale activity rather than one single entity. Still, the sudden stop right after the lawsuit news is hard to ignore completely.
For the moment, the pattern appears broken, which could mean cleaner price action ahead if the scrutiny continues. It might even mark a small step toward less manipulative trading in the space overall. But we should watch closely—if the headlines fade and the old rhythm returns, it could suggest the pause was temporary.
What do you think caused the change—real legal impact or just market coincidence? Share your thoughts below.
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