The token MYX saw a sharp rise followed by a large wave of liquidations that hit market makers and leveraged traders. Over $40 million turned into losses, highlighting the risks of borrowed money and raising questions about possible coordinated actions.
Price surge and short-squeeze dynamics
MYX moved from $0.10 to $16 in just 60 days, fueling speculation and complex derivatives trading that ended in heavy losses. Analyses by experts found that the rapid increase forced short sellers to cover positions, creating a feedback loop that amplified the rise and led to forced closures costing millions. The episode culminated in total losses exceeding $40 million on positions using borrowed funds.
On-chain and exchange observations
Experts noted a reported 39 million token unlock occurring alongside the price surge. Synchronized trading patterns appeared on platforms such as Bitget, PancakeSwap, and Binance, which raised doubts about the authenticity of the rally and invited comparisons to a “pump-and-dump” driven by apparent false demand.
Leverage and market structure drivers
Technical factors magnified the speed and scale of the moves. The availability of up to 50x leverage on Binance and a shift to funding rates every four hours increased pressure on short positions, according to the same analysis. Binance also saw a 6 million token drop in open interest during the episode, signaling a rapid contraction of leveraged derivatives exposure.
Implications
Very high leverage can turn modest price moves into market-wide loss events. Token unlocks and concentrated liquidity points heighten vulnerability to coordinated operations, while the mix of unusual on-chain activity and significant losses draws attention from regulators and market providers. Institutional and retail participants may reassess exposure to tokens with concentrated liquidity.
The MYX event left over $40 million in losses and sharpened scrutiny of a 39 million token unlock and market practices. A related moment noted in the analyses was the event on Sept. 8, 2025, illustrating how easily leveraged positions can break in markets with highly concentrated liquidity.
