The MYX Affair: A Deliberately Orchestrated Exit-Liquidity Game

Original Author | @agintender

Compiler | WuBlockchain Aki

Original Source Link:

https://x.com/agintender/status/1965432537599098931

Disclaimer: This article is a reposted piece. Readers may refer to the original source for more information. If the original author has any objections to the form of reposting, please contact us and we will make modifications as requested. The repost is intended solely for information sharing and does not constitute any investment advice, nor does it represent the views or positions of WuBlockchain.

By flaunting outsized price spikes as bait, MYX seized the front-and-center slots across media outlets and data dashboards, luring eager traders to deploy real capital — only to culminate in a fireworks show of liquidations. MYX was a powder keg with the trigger in the hands of whales; whether you went long or short, it was a one-way trade. The market is not short of opportunities; what’s scarce is level-headed risk discipline — most “success stories” on display are simply survivorship bias.

Part I: The MYX Price Explosion — A Quantitative Overview

1.1 Charting the Parabolic Arc

The MYX token’s price action exhibits a classic parabolic profile, with both the speed and magnitude of gains reaching extreme levels over a short window. A reconstruction of the timeline highlights its remarkable ascent:

● Starting from a historical low of approximately $0.047 in June 2025.

● In the first notable leg higher, the price reached an interim peak of $2.49 on August 8, 2025.

● A more explosive rally followed in September 2025: within just seven days, the price surged by over 1,132%, setting a new all-time high (ATH) above $17. On September 9, the single-day gain exceeded 291%.

1.2 Volume and Market-Cap Dynamics

Alongside the price spike, trading volume and market capitalization expanded explosively, reflecting a surge in market attention and speculative capital.

Volume surge: Fueled by the MYX Finance V2 upgrade narrative (arguably a rationalizing pretext), spot trading volume on September 7–8 expanded by over 710% to $354 million. During the subsequent peak, this figure climbed further to an astonishing $880 million. Such scale indicates extremely overheated sentiment with heavy speculative participation.

Market-cap ballooning: During the August rally, MYX’s market capitalization exceeded $300 million. By September 8–9, it swelled to over $3.5 billion, briefly placing MYX inside the global top-35 crypto assets by market cap.

1.3 Technical Signals of Overheating

Technical indicators clearly show the market entered an extreme overbought and irrational state — conditions that carry a very high risk of reversal.

Relative Strength Index (RSI). RSI gauges momentum and overbought/oversold conditions. During this leg higher, MYX’s 14-day RSI reached 96.21, while the 7-day RSI hit an unprecedented 98.06. As a rule of thumb, RSI readings above 70 are considered overbought; levels above 95 indicate a statistically unsustainable speculative frenzy, almost invariably foreshadowing a sharp pullback.

Price–volume positive feedback loop. Price and volume interacted to form a powerful positive feedback cycle. The initial upswing was likely driven by concentrated, coordinated buying, which succeeded in drawing early attention. As the price rose, the outsized percentage increases in reported volume surfaced across major exchanges and data aggregators, providing ready fodder for crypto news outlets and social-media influencers.

Coverage and amplification by media, KOLs (key opinion leaders), and data platforms — this article included — rapidly forged a social consensus around MYX as a “hot token,” igniting FOMO among retail investors (akin to the promotional effect created by large whale orders on HL). This self-reinforcing process produced the parabolic ascent. Crucially, the retail-driven inflow furnished the deep liquidity necessary for early insiders and controlling whales to distribute their tokens at elevated prices.

Part II: Beneath the Surface — On-Chain Forensics and Manipulation Indicators

MYX’s vertical move was not mere market exuberance; it was the composite outcome of coordinated dynamics.

2.1 The Engine of the Spike: An Acute Perp Short Squeeze

Derivatives as the main battleground. The derivatives market was the core arena — and the primary engine — of the price explosion.

Key figures. According to Coinglass, on September 8 the market witnessed a large liquidation event: total liquidations reached $14.63 million, of which roughly $11 million came from short positions being force-closed.

Mechanism. As MYX pushed higher and broke key technical resistance (e.g., $3.69), a wave of forced liquidations was triggered on short positions. Liquidated shorts must buy MYX back in the market to close, creating a sudden, involuntary bid. This cascade of forced buying forms a vicious loop — higher prices trigger more liquidations at higher levels, which in turn propel prices further. Perpetual futures on MYX offering leverage up to 50× magnified the dynamic, making prices extremely sensitive to relatively small moves.

Accelerants. Binance’s adjustment to the funding-rate settlement frequency on MYX perpetuals — every 1 hour — further worsened conditions for shorts. More frequent funding settlements raise the carry cost and uncertainty of maintaining short exposure, effectively trapping short sellers and making them more vulnerable to upside shocks.

2.2 A Cloud of Suspicion: Precisely Timed Unlocks and VC Distribution

If the short squeeze was the engine of the rally, the timing of the token unlock supplied the “tailwind.” (A deft move to lean into the market’s “unlock ⇒ sell-off” narrative.)

Event overlap. The price apex coincided almost perfectly with a major unlock event that released 39 million MYX — about 3.9% of total supply — into the market. For a token with a relatively small free float, this represented a substantial supply shock.

On-chain evidence. Following the unlock, on-chain traces show the well-known venture firm Hack VC transferring 835,000 MYX to the exchange MEXC — a clear preparatory step for large-scale distribution.

History rhymes. This was not an isolated episode. In August, after a similar unlock, MYX fell 58%. The market appears to have internalized a pattern: unlock windows serve as opportunities for early investors and insiders to realize gains and exert heavy sell pressure — and as periods when a high-probability drawdown is widely anticipated.

2.3 Allegations of Coordinated Manipulation and Wash Trading

Disproportionate derivatives volume. Daily perpetuals turnover in MYX abruptly spiked to $6–9 billion, an implausible figure for a token with far smaller market cap and liquidity — implying a large share of non-economic trading activity.

Synchronized trading patterns. Identical, programmatic order behaviors were observed across Bitget, PancakeSwap, and Binance. Cross-venue synchronicity of this kind is unlikely to emerge spontaneously from many independent actors and instead resembles flows driven by a single entity or a coordinated group running bots.

On-chain fund aggregation. Traces suggest that proceeds from numerous small buy orders ultimately converged into a single centralized wallet, a classic tactic to mask the true intent and capital base of a dominant player.

Wash trading to manufacture activity. The aim, Dominic argues, is to artificially inflate volume and attract retail who equate high turnover with market health and liquidity. Once retail is drawn in, manipulators can distribute tokens to them at elevated prices. The observed patterns around MYX closely align with hallmarks of wash trading.

Part III: Dissecting the “Kill-Box” — A Strategic Post-Mortem

The core logic at play: a “kill-box” engineered on a tightly controlled spot float. This was not simple market euphoria but a carefully sequenced capital operation. The strategy breaks down as follows:

3.1 Step One — Lay the Groundwork: Highly Concentrated Spot Control (High Control)

Low float, heavy insider holdings. MYX has a total supply of 1 billion tokens, yet at the price peak the circulating supply was only about 197 million — less than 20% of the total. Under the allocation plan, core contributors (20%) and investors (17.5%) together hold 37.5% of total supply. Most of these tokens are under long-term lockups, meaning that at any given time the truly free float available for open-market trading is very limited.

The control advantage. This low-float, high-concentration structure creates ideal conditions for price control/manipulation. When a small number of entities control the vast majority of tokens, they need only modest capital to engineer large spot price swings, thereby paving the way for subsequent derivatives-market maneuvers.

3.2 Step Two — Fire the Engine: Leveraging Spot to Drive Perps (Price Manipulation)

Turning perps into the main hunting ground. Large holders used their control over the spot float to make the perpetuals market the core venue for harvesting the opposing side.

Manufacturing a short squeeze. This was the centerpiece of the operation. By pushing spot prices higher, manipulators could precisely lift the perpetuals’ mark price past key technical thresholds (e.g., $3.69). That break triggered a chain reaction: many short positions — facing margin shortfalls — were forcibly liquidated. Liquidated shorts had to buy MYX back in the open market to cover, creating a large, involuntary bid that drove prices even higher.

Staggering liquidation prints. On September 8, total market liquidations reached $14.63 million, with over $11 million attributed to shorts. The data strongly suggest that lifting spot served, among other aims, to target shorts with precision in the derivatives market.

3.3 Step Three — Amplify the Gains: “Pump-as-Marketing” (Attracting Counterparties)

Turning a vertical rally into marketing. Driving the price to extreme heights is, in itself, the most effective marketing device in this playbook.

Manufacturing FOMO. A gain of over 1,132% in just eight days (Sept 1–8) and a brief entry into CoinMarketCap’s global top-35 on Sept 9 drew the market’s full attention. The parabolic move, amplified across major media and social platforms, generated acute FOMO among retail participants.

Pulling in fresh counterparties. The extreme sentiment successfully attracted large waves of new traders. Momentum chasers opened longs to ride the move, while others — enticed by elevated funding rates and expectations of a pullback — opened shorts. Either way, they became the other side of the trade the operators needed, supplying depth and liquidity and setting the stage for the next round of distribution.

3.4 Step Four — The Endgame: Distribute at the Top and Harvest Both Sides (Liquidations Long and Short)

Perfect synchronization with the unlock. The price apex coincided strikingly with the unlock of 39 million MYX, creating a liquidity-rich window with a broadly bearish directional consensus. The prior “pump” manufactured precisely the conditions needed for orderly exit.

On-chain evidence. Following the unlock, the venture firm Hack VC promptly transferred approximately $2.15 million worth of MYX to a centralized exchange — signaling intent to distribute. In effect, retail became the exit liquidity for insiders. One could also read the sequence as a bearish set piece staged for retail and analysts alike.

Two-way harvest. The playbook aims to win against both longs and shorts:

1. On the way up, engineered spot lifts triggered short liquidations, harvesting the short side.

2. At the top, once spot inventory was distributed, operators could flip short. With price support withdrawn and active selling, a sharp drawdown becomes likely (as in the prior 58% post-unlock decline in August). Those who chased the top on leverage are then liquidated. In all cases, the trigger — spot control — lies with the operators; whether positions blow up or profit depends on their discretion.

Bottom line. MYX’s vertical move was not a natural response to technology or fundamentals. It was a kill-box constructed on highly concentrated spot control, using spot as a lever to drive derivatives. The core objective: manufacture spectacle to attract counterparties, precision-liquidate shorts, and create ideal liquidity for insiders to offload newly unlocked tokens at elevated prices — thereby harvesting both sides of the market.

Part IV: Summary

These seemingly discrete events — the V2 product narrative, the short squeeze, the token unlock, and the wash-trading allegations — were in fact tightly interlocked components of a single, carefully orchestrated strategy.

First, the operators knew the unlock date for 39 million tokens. To sell at the highest possible prices during that window, they had to manufacture outsized demand in advance. They therefore amplified — or borrowed and piggybacked on — official channels and social media to heavily promote the V2 upgrade storyline, supplying a “fundamental” rationale for the impending rally. Next, they may have used trading bots to conduct wash trading across major venues, fabricating the appearance of high activity and nudging price upward. Once the initial rise lured in the first wave of short sellers, the trap was set.

The operators then deployed a key burst of capital to jam the price decisively above critical liquidation levels, triggering a large-scale short squeeze. From that point, forced-buying flows from liquidated shorts became the primary fuel for the parabolic ascent, reducing the need for further operator capital. Finally, at the peak — when FOMO was most intense and on the very day of the unlock — they obtained the exit window they wanted: extreme selling prices and a large retail cohort to take the other side. The newly unlocked 39 million tokens were offloaded into the market, and retail investors, unfortunately, served as the exit liquidity.

Let us always maintain a healthy respect for the market.

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