Lighter said a trading bot malfunction on July 25 briefly disturbed the HYPE and ZEC markets. During the incident, HYPE swung to $60.96 and $56.31 within 30 seconds while external prices stayed near $58, before recovering within a minute. In ZEC, the bot’s activity briefly pushed the price to $521. According to Lighter, no market-wide forced liquidations occurred and losses were confined to the account that caused the issue. The bot was launched with $500,000 and in five minutes traded $27 million back and forth in HYPE, accounting for 74.2% of market volume, while generating $220.8 million in taker volume in ZEC, or 86.7% of that market. Lighter said its risk engine marked positions using an anti-manipulation fair price and rejected 801 orders when margin was insufficient. The bot ultimately lost about $482,000 of its own funds, while the Lighter Liquidity Pool, or LLP, earned about $143,000 and 40 separate accounts each made more than $1,000.
According to ChainCatcher, Lighter said in a post on X that a trading bot malfunctioned on July 25, briefly affecting the HYPE and ZEC markets.
During the episode, HYPE touched $60.96 and $56.31 within 30 seconds, while external market prices were around $58 at the same time. Lighter said the price recovered within one minute.
In ZEC, the bot's activity briefly pushed the price up to $521.
Lighter said there were no market-wide forced liquidations, and the losses were limited to the account that triggered the issue.
Trading size and market share during the incident
Lighter said the bot started with $500,000 in capital and executed heavy round-trip trading within five minutes.
- It traded $27 million back and forth in HYPE, equal to 74.2% of market volume
- It generated $220.8 million in taker volume in ZEC, accounting for 86.7% of that market
Risk controls and final outcome
Lighter said its risk engine marked positions using an anti-manipulation fair price and rejected 801 orders when margin was insufficient.
In the end, the bot lost about $482,000, all from its own funds. Lighter said its Lighter Liquidity Pool (LLP) earned about $143,000, while 40 separate accounts each made more than $1,000.
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