A large crypto trader lost about $8.2 million on a leveraged long in the ARC perpetuals market on decentralized derivatives venue Lighter after ARC slid around 6:00 pm ET Wednesday, a report said, citing posts from the platform.

We had the first battle test of LLP Strategies in the last several hours. TLDR: it worked as expected and protected LLP holders as well as traders. Deep dive in this thread.

— Lighter (@Lighter_xyz) February 26, 2026

The trader built the position over several days, pushing ARC open interest to roughly $50 million while about 600 traders and market makers took the other side. When the trade started to break, about $2 million was liquidated on the order book and the remainder was shifted into Lighter’s liquidity provider pool (LLP) under a high-risk strategy bucket. Lighter said it then activated auto-deleveraging (ADL), partially closing profitable shorts to unwind exposure. At one point, the LLP briefly held about 200 million ARC, valued at $14.7 million, before the position was reduced further, with LP losses limited to about $75,000.

Lighter said it has since added guardrails, including a $40 million open interest cap on ARC and a capped-liquidity strategy with about $100,000 USDC allocated, with the system set to transition to ADL if that liquidity is exhausted. Stakeholders will watch whether similar caps roll out to other markets and whether a post-mortem tightens risk controls.

Source: Lighter (X).

Disclaimer: Crypto Economy Flash News are based on verified public and official sources. Their purpose is to provide fast, factual updates about relevant events in the crypto and blockchain ecosystem.

This information does not constitute financial advice or investment recommendation. Readers are encouraged to verify all details through official project channels before making any related decisions.

---

Filed under: News - @ February 26, 2026 12:23 pm