Foreign media reports that Memecore's stock price plummeted by approximately 85% intraday, wiping out about $2.7 billion in market capitalization at one point. The sharp price drop triggered a concentrated liquidation in the derivatives market, with open interest rapidly declining, indicating that traders quickly withdrew amidst the volatility.

Liquidation concentrated on long positions

Memecore's total liquidation amounted to $9.27 million, of which long positions accounted for $8.26 million. The article argues that this decline resembles a passive deleveraging process rather than a slow correction.

Positions contracted rapidly

Data shows that open interest fell by 71.47% in a short period, while derivatives trading volume surged by 1252% to $354.02 million. This combination usually indicates that the market is not adding to its positions, but rather closing out existing ones in a concentrated manner.

Liquidity concerns intensify

The article cites market sources claiming that approximately 99% of the token supply may be controlled by insiders, resulting in a small circulating supply. The report also mentions that the token was previously driven to a high valuation due to low on-chain liquidity, amplifying market concerns about liquidity.

The rebound remains to be seen.

Memecore subsequently rebounded from its intraday low to around $0.90, but remains well below several levels it had previously broken. The article argues that the current rebound is more like a brief pause after a sharp drop, and whether the market stabilizes will depend on subsequent changes in trading volume and open interest.