Lisk (LSK) climbed above $2 on Sunday, a gain of more than 900% from its August floor. On Sunday alone, it soared by over 500% before surrendering most of that within hours and now trades near $0.80.
The round trip made LSK the single largest liquidation event in crypto over 24 hours. Traders positioned on both sides of the move were forced out.
Short Sellers Paid for the LSK Price Spike
Coinglass recorded $41.13 million in LSK liquidations across the day. Shorts accounted for $33.68 million of that total, against $7.44 million in longs.
That four-to-one split points to forced buying rather than fresh demand. Short sellers betting on a decline had to repurchase the token as it rose. Each repurchase lifted the price further.
Open interest, meaning the value of outstanding futures positions, reached roughly $42 million against $501 million in daily futures turnover. Spot order books were far thinner. LSK’s current price and volume show it holding near $0.81, still up more than 300% on the day.
BeInCrypto flagged the conditions in July, when Binance added LSK to its Monitoring Tag, a delisting risk warning label applied to unusually volatile listings.
The Burn Traders Bought Has Not Been Approved
Most of the positioning traces back to August 25, when Lisk said it would shut down its blockchain on October 31 and rebuild as a stablecoin payments service for company finance teams.
That plan carries a proposal to destroy 100 million LSK held in the treasury, cutting maximum supply by a quarter. Token holders have not yet voted on it.
LSK continues as a loyalty token on Ethereum and Base. Anyone still holding on the old chain must bridge out before the deadline.
The token remains more than 97% below its 2018 peak, and whether Sunday’s bid survives the vote is the question the next three weeks will answer.
The post Forgotten Crypto Token LSK Jumps 500% Before Crashing: What Happened? appeared first on BeInCrypto.
Source: https://beincrypto.com/lsk-price-surge-short-squeeze/
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