Lighter: HYPE and ZEC experienced brief violent fluctuations, resulting in a trading bot losing approximately $482,000

Odaily reports that Lighter tweeted about a trading bot malfunction on July 25, which briefly impacted the HYPE and ZEC markets.

During the incident, the HYPE price hit $60.96 and $56.31 within half a minute, while the external market price was around $58 during the same period. The price subsequently recovered within one minute. There were no forced liquidations across the entire market, and the losses were limited to the account that triggered the issue.

The bot started with $500,000 in capital and executed $27 million in round-trip trades on HYPE within 5 minutes, accounting for 74.2% of the market volume. On ZEC, it generated $220.8 million in taker volume, representing 86.7% of the total, causing the ZEC price to briefly spike to $521.

Lighter stated that the risk engine marked positions using a manipulation-resistant fair price and rejected 801 orders when margin was insufficient. Ultimately, the bot lost approximately $482,000, all of which were its own funds. The Lighter Liquidity Pool (LLP) gained roughly $143,000, and 40 independent accounts each realized profits exceeding $1,000.