Lighter’s LLP protection is just insane... On Lighter, one trader opened a very large long position on $ARC, which was even much bigger than the market size. On the opposite side, around 600 traders went short, and the total OI went up to $50M. Around 6PM ET, price of $ARC started falling. First that big long position was liquidated in the order book for about $2M USDC. When the price fell further, the account was deleveraged and moved to LLP under strategy 7. During the ADL, LLP took on 200M $ARC (around $14.7M) at a price of 0.072867. Initially, LLP was in profit on this position, but the price kept falling. As soon as strategy 7s 75k USDC was fully depleted, another ADL was triggered. This time, healthy short positions became the counterparties of LLP at around 0.071123. In the end, that long trader had to take a loss of around 8.2M, and LLP only lost 75k bro, just 75k in losses. And the ones who shorted made huge profits. That’s it Lighter 🕯️