‍Whale Trader Suffers $8.2 Million Loss on Lighter Following Leveraged Trade Failure

A significant liquidation event occurred on the decentralized derivatives platform Lighter, resulting in a whale trader losing approximately $8.2 million in USDC. The incident, which took place on February 25, 2026, stemmed from a massive leveraged long position on the ARC perpetuals market.

The trader's position drove open interest in the ARC market to $50 million, but a subsequent price decline triggered liquidations. While $2 million was liquidated directly, the remainder was transferred to the Lighter Liquidity Provider (LLP) pool. Despite the large exposure, Lighter's isolated risk management protocols limited losses to $75,000 for liquidity providers and kept the fallout contained. The platform has since implemented new safeguards, including a $40 million cap on ARC market open interest, to prevent similar manipulation attempts.

https://cryptovka.com/news/whale-trader-loses-8-2m-after-leveraged-arc-bet-fails-on-lighter