This article is reprinted with permission from Wu Shuo Real, author: agintender, copyright belongs to the original author.

MYX leveraged exaggerated price increases as a gimmick to capture the traffic center of various media and data platforms, prompting eager warriors to invest their hard-earned money, contributing to a spectacular liquidation. MYX is like a powder keg, with the trigger in the hands of large holders, leaving you with no way back regardless of bullish or bearish positions. The market is not short of opportunities; it only lacks "survivor bias" willing to take risks.

The author declares: This article does not constitute any investment advice and strongly discourages participation in such abnormal trading. This article is not aimed at anyone or any project party, but is purely for academic analysis purposes, allowing more people to understand the phenomenon and the underlying mechanisms.

Part One: MYX Price Explosion: Quantitative Overview

1.1 Depicting the Parabolic Trajectory

The price trend of the MYX token exhibits a typical parabolic shape, with extreme levels of speed and amplitude in the short term. A timeline of this process reveals its astonishing growth trajectory:

• The token price started from a historical low of about $0.047 in June 2025.
• In the first significant surge in August 2025, the price reached a peak of $2.49 on August 8.
• Subsequently, in September 2025, a more explosive upward trend unfolded. In just seven days, the price skyrocketed over 1132%, hitting a historic high of over $17. On September 9 alone, the price increase exceeded 291% in one day.

1.2 Trading Volume and Market Cap Dynamics

Accompanying the price surge, trading volume and market capitalization also experienced explosive growth, reflecting the rapid influx of market attention and speculative capital.

• Trading Volume Surge: Driven by the narrative of MYX Finance V2 upgrade (which may just be a rationalization "pretext"), the spot trading volume on September 7-8 dramatically expanded, increasing by over 710% to reach $354 million. During the subsequent price peak, this figure soared to an astonishing $880 million. Such massive trading volume indicates extreme market enthusiasm, with a large amount of speculative capital involved.

• Market Cap Expansion: During the rise in August, MYX's market cap surpassed $300 million. By September 8/9, its market cap ballooned to over $3.5 billion, briefly ranking among the top 35 cryptocurrencies globally.

1.3 Technical Indicators of Market Overheating

Technical indicators clearly show that the market has entered an extremely overbought and irrational state, signaling a high risk of price correction.

• Relative Strength Index (RSI): The RSI is a key indicator for measuring market momentum and overbought/oversold conditions. During this surge, MYX's 14-day RSI reached 96.21, while the 7-day RSI hit an unprecedented 98.06. Typically, an RSI value above 70 is considered overbought; values exceeding 95 indicate that the market has entered a statistically unsustainable speculative frenzy, almost invariably foreshadowing an imminent sharp correction.

The interaction between price and trading volume formed a powerful positive feedback loop. The initial price increase was likely driven by concentrated, coordinated buying, successfully attracting initial market attention. As prices climbed, the percentage increase in trading volume displayed on major exchanges and data aggregation platforms was enormous, providing material for cryptocurrency news media and social media influencers.

Media, KOLs, data platforms, etc. (this article is one of them) reporting and disseminating these astonishing figures quickly created a social consensus of a "hot token," triggering retail investors' FOMO (similar to the trading of large whale traders on HL, a promotional effect stemming from "large orders"). This self-reinforcing process formed a parabolic upward trajectory. More importantly, this influx of funds driven by retail investors provided the necessary massive liquidity for early insiders and controllers to distribute their held tokens at high prices.

Part Two: Beneath the Surface: On-Chain Evidence and Market Manipulation Indicators

The price surge of MYX is not merely a result of market enthusiasm but a comprehensive outcome of a series of meticulously planned events.

2.1 The Engine of Surge: Severe Derivatives Short Squeeze

The derivatives market is the main battleground and core engine of this price explosion.

• Key Data: According to Coinglass, a large-scale liquidation event occurred on September 8, with a total liquidation amount reaching $14.63 million, of which as much as $11 million came from the liquidation of short positions.

• Mechanism Analysis: When the MYX price was pushed up and broke through key technical resistance levels (e.g., $3.69), it triggered a forced liquidation of a large number of short positions. These forced liquidated short traders had to buy MYX in the market to cover their positions, instantly creating enormous, involuntary buying pressure. This cascading forced buying formed a vicious cycle, further pushing prices up, leading to the liquidation of more short positions at higher prices. The up to 50x leverage offered by MYX perpetual contracts amplified this effect, making prices highly sensitive to slight fluctuations.

• Fueling Factors: Binance's adjustment of the funding rate settlement frequency for MYX perpetual contracts (changed to once every hour) further exacerbated the shorts' predicament. More frequent funding rate settlements mean increased costs and uncertainties for holding short positions, effectively trapping short traders in losing positions and making them more susceptible to price increases.

2.2 Doubts: Precisely Timed Token Unlocking and VC Sell-offs

If the short squeeze is the engine of the rise, then the timing of the token unlocking events reveals the "timing" of this surge. (A clever "turning the tables" move, playing on the market's impression that unlocking leads to a decline.)

• Event Overlap: The peak price period perfectly coincided with a significant token unlocking event. This unlocking released 39 million MYX tokens to the market, accounting for 3.9% of the total supply. For a token with a relatively small circulating supply, this is a massive supply shock.

• On-Chain Evidence: After the token unlocking, on-chain data tracking showed that the well-known venture capital firm Hack VC transferred 835,000 MYX to the MEXC exchange, a clear signal of preparation for a large-scale sale.

• Historical Repetition: This is not an isolated incident. In August, after a similar token unlocking event, MYX's price plummeted by 58%. This indicates that the market has formed a clear pattern: token unlocking is a window for early investors and insiders to cash out and exert significant selling pressure on the market, as well as a consensus that the token is "highly likely to decline."

2.3 Accusations of Coordinated Manipulation and Wash Trading

Analyst's Warning Signals: Analyst Dominic on X provided a detailed analysis, pointing out multiple danger signals indicating market manipulation:

• Disproportionate Trading Volume: The daily perpetual contract trading volume of MYX suddenly surged to $6 billion to $9 billion, a figure that is completely illogical for a token with a market cap and liquidity far smaller than this, suggesting a large amount of non-genuine trading activity.

• Coordinated Trading Patterns: Identical, programmatic trading patterns were observed across multiple exchanges such as Bitget, PancakeSwap, and Binance. This cross-platform synchronized behavior is highly unlikely to be spontaneously formed by a large number of independent market participants, but rather appears to be controlled by a single entity or a colluding group through trading bots.

• On-Chain Fund Aggregation: On-chain data shows that a large number of small buy orders' funds ultimately aggregated to a centralized wallet address. This is a typical manipulation technique used to obscure the true intentions and scale of funds of a single large player.

• Wash Trading creates false trading activity. Its purpose is to artificially inflate trading volume, attracting retail investors who view high trading volume as a signal of market health and good liquidity. Once retail investors are lured in, manipulators can sell their tokens at high prices, completing the harvest. The various signs observed in the MYX event closely align with the typical characteristics of wash trading.

Part Three: Analysis of the "Killer Move": A Strategic Review

The core logic of this event: "Killer move under high control of spot." This is not a simple market frenzy but a meticulously planned, interconnected capital operation. Its strategy can be broken down into the following steps:

3.1 Step One: Laying the Foundation — Highly Concentrated Spot Control (High Control)

Low circulation and high internal holding: MYX's total supply is 1 billion tokens, but at the price peak, the circulating supply was only about 197 million tokens, less than 20% of the total. According to the token distribution plan, core contributors (20%) and investors (17.5%) together hold 37.5% of the total supply. Most of these tokens are in long-term lock-up, meaning that at any given time, the truly tradable "floating chips" in the market are very few.

Advantages of Control: This low circulation, high concentration structure creates perfect conditions for price manipulation. When the vast majority of tokens are controlled by a few entities, they can create significant price fluctuations in the spot market with relatively little capital, paving the way for subsequent operations in the derivatives market.

3.2 Step Two: Starting the Engine — Leveraging Spot to Manipulate Contracts (Manipulating Prices)

Large holders used their control over the spot market to turn the derivatives market into the core battleground for harvesting counterparties.

• Creating Short Squeeze: This is the core mechanism of this manipulation. By raising prices in the spot market, manipulators can precisely push the mark price of perpetual contracts, causing it to break through key technical levels (like $3.69). This action triggers a chain reaction: a large number of short positions are forcibly liquidated due to insufficient margin. These forced liquidated shorts must buy MYX in the market to cover their positions, creating enormous, involuntary buying pressure, further pushing prices higher.

• Astonishing Liquidation Data: On September 8, a total of $14.63 million in liquidations occurred across the network, with over $11 million coming from liquidated short positions. This clearly indicates that one of the main purposes of raising spot prices was to precisely "hunt" shorts in the derivatives market.

3.3 Step Three: Expanding Gains — "Pump" as Marketing (Attracting Counterparties)

The "marketing effect" of the insane price surge is a crucial part of this strategy. Raising the token price to the sky is itself the most effective marketing tactic.

• Creating FOMO Sentiment: In just 8 days (from September 1 to 8), the price surged over 1132%, and on September 9, it briefly entered the top 35 of CMC's global market cap, quickly attracting the attention of the entire market. This parabolic rise spread through major media and social platforms, creating strong FOMO among retail investors.

Attracting New Counterparties: This extreme market sentiment successfully drew a large number of new traders into the market. Traders attracted by the price increase would open long positions to chase the rise, while those drawn in by high funding rates and expectations of a pullback would open short positions. Regardless of the direction, they became the "counterparties" needed by the manipulators, providing depth and liquidity to the market and preparing for the next phase of harvesting.

3.4 Step Four: Final Objective — Distributing and Harvesting at High Prices (Liquidating Longs and Shorts)

The ultimate goal of this meticulously planned price surge clearly pointed to creating exit opportunities for those in the know and harvesting the market in both directions.

Perfect Synchronization with Token Unlocking: The peak price coincided astonishingly with the unlocking event of 39 million MYX tokens. The price manipulation created a perfect window of ample liquidity and a consistent bearish sentiment.

On-Chain Evidence: The well-known venture capital firm Hack VC immediately transferred MYX tokens worth approximately $2.15 million to exchanges after the token unlocking. This indicates that retail investors became the "exit liquidity" for insiders. Or perhaps, this was a "bearish" act staged for retail investors and analysts?

Bidirectional Harvesting: The goal of this game was to profit from both long and short sides.

During the upward surge, by triggering the shorts, they harvested the short counterparties. Conversely, the same applies.

After distributing in the spot market at the price peak, manipulators could then short the market. As they stopped supporting the price and began to sell, a price crash was inevitable (as the previous unlocking in August had led to a 58% price drop). At this point, those who chased the price at the top would be completely liquidated. Regardless of being long or short, the explosive trigger (spot) was controlled by others, and whether it resulted in liquidation or profit would depend on the mercy of others.

In summary, the explosive rise of MYX was not a natural response of the market to its technology or fundamentals, but a "killer move" orchestrated using highly concentrated spot control, leveraging spot prices in the derivatives market. Its core purpose was to attract a large number of traders to become counterparties through sensational marketing effects, thereby achieving precise liquidation of shorts and creating an ideal liquidity environment for those in the know to sell newly unlocked tokens at high prices, ultimately completing a bidirectional harvest of the market.

Part Four: Conclusion

These seemingly independent events — the V2 new product narrative, short squeeze, token unlocking, and wash trading accusations — are actually part of a meticulously planned overall strategy. First, those in the know anticipated the date of the unlocking of 39 million tokens. To sell at the highest price during this period, they needed to create massive market demand in advance. Thus, they heavily promoted the V2 upgrade narrative through or by borrowing from official channels and social media, providing a "fundamental" rationale for the upcoming rise. Next, they likely used trading bots to engage in wash trading across major exchanges, creating the illusion of active trading volume and slowly pushing prices higher. When the price increase attracted the first batch of shorts, the trap was set.

Subsequently, the manipulators invested a key amount of capital to push the price sharply above the critical liquidation line, triggering a large-scale short squeeze. At this point, the buying pressure generated by the forced liquidations became the main fuel driving the parabolic price increase, and the manipulators themselves no longer needed to invest large amounts of capital. Finally, on the day the price peaked, when market FOMO was at its strongest, and coinciding with the token unlocking, they obtained their coveted exit window: a very high selling price and a large group of retail investors ready to buy. The newly unlocked 39 million tokens flooded the market, while retail investors unfortunately became their "exit liquidity."

Related: Ripple (XRP) Reserves Surge by 1.2 Billion in a Single Day: Is This Accumulation or a Selling Signal?

Original: “The MYX Incident: A Carefully Orchestrated Liquidity Exit Game”

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