Lighter Limits LLP Loss to $75K as ARC Perp Triggers $8.2M Hit

• LLP exposure capped at $75K even as ARC open interest surged to nearly $50M USDC.
• Auto-deleveraging mechanism shifted risk, leaving the large long trader with an $8.2M loss.
• Lighter added a $40M OI cap and moved ARC to a capped liquidity strategy with $100K allocation.

Lighter, a decentralized perpetual futures trading platform, reported that its liquidity protection system was tested during a market move involving the ARC perpetual contract, resulting in an $8.2 million loss for a single trader while limiting losses to its liquidity pool.

According to a series of posts published by the platform, a trader accumulated a large long position in ARC over several days, eventually pushing total open interest in the market to approximately $50 million USDC. Roughly 600 other traders and market makers took the opposite side of the position.

Large ARC Position Triggers L…

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