Sahara AI: SAHARA price fluctuations are a chain reaction of contract liquidations

Sahara AI released an update regarding the price fluctuation event of the SAHARA token, stating that it has confirmed that the team and investors' tokens were not sold or transferred. The designated market makers, Amber Group and Herring Global, operated normally during the event, and all token smart contracts are secure.

The cause of the event was a chain reaction from contract leverage liquidation: In the three weeks leading up to June 9, the leveraged long positions of the SAHARA contract continued to accumulate to a historical high, but liquidity was thin. Selling pressure triggered large-scale automatic liquidations, with peak liquidations reaching up to $992,000 SAHARA per second. In the first two minutes, 60% of the contract orders were passive sell liquidations, and within 5.5 minutes, the contract price plummeted by 64%, executing $60 million in contract orders within 30 minutes. At one point, the contract price was 27% lower than the spot price, indicating that the liquidation speed exceeded the market's absorption capacity.

The large on-chain token transfers were pre-arranged Chainlink CCIP cross-chain bridge contract recharges, providing liquidity for the BNB Chain cross-chain bridge. The team is working with exchanges to determine the initial cause of the selling pressure and will announce the final investigation results and strengthening measures subsequently.

This content is provided for general informational purposes only and doesn't constitute financial, investment, legal, or tax advice. Any events, rewards, online promotions, or related information mentioned herein should not be considered a recommendation, solicitation, or invitation to purchase, sell, trade, or otherwise deal in any crypto assets. Crypto assets are highly volatile and may result in loss. The availability of WEEX services, products, and related events may vary by region. You are responsible for ensuring that your participation is in accordance with applicable local laws and regulations.