- \n
- Binance sent $32M SOL to Wintermute while Coinbase sent $30 USDC to potentially buy the dip.<\/em><\/li>\n
- Solana\u2019s market dropped over 10% during the weekend, potentially caused by Binance\u2019s alleged manipulation.<\/em><\/li>\n<\/ul>\n
Allegedly, the Binance exchange recently engaged in \u201cflushing\u201d or \u201cliquidation hunting\u201d by sending over $32 million worth of Solana [SOL]<\/a> to market maker Wintermute during a low volume weekend. <\/span><\/p>\n
The intent was clear: to push the price of SOL down into the lower range, thereby forcing long-standing leverage traders to liquidate their positions. <\/span><\/p>\n
This strategy is particularly effective on weekends, when trading volumes are naturally lower, making markets more susceptible to manipulation.<\/span><\/p>\n
According to AMBCrypto\u2019s look at Arkham\u2019s data, Wintermute played its part by selling the SOL at a lower price, thus dumping the price further, only to buy it back at the artificially depressed rates.<\/span><\/p>\n
![\"\"](\"https:\/\/ambcrypto.com\/wp-content\/uploads\/2025\/02\/Givzg2HWoAAOz24.jpg\")
<\/a><\/p>\nSource: Arkham<\/p>\n<\/div>\n
Once the dip was manufactured, Wintermute reportedly returned more SOL to Binance than it had initially received, capitalizing on the price difference. <\/span><\/p>\n
This was a win-win scenario for both entities, but according to crypto commentator MartyParty<\/a>,\u00a0<\/span><\/p>\n
\n
\u201cThe losers are the leverage traders and the panic sellers.\u201d<\/p>\n<\/blockquote>\n
Similarly, Coinbase had sent $30 million in USDC to Wintermute on Solana, reportedly to take advantage of the dip, responding to recent claims of insufficient SOL holdings that led to users getting delays in their Solana withdrawals. <\/span><\/p>\n
![\"\"](\"image\/svg+xml,%3Csvg%20xmlns=\")
![\"\"](\"https:\/\/ambcrypto.com\/wp-content\/uploads\/2025\/02\/Giv5FyrW0AAC6hp.jpg\")
<\/a><\/p>\nSource: Arkham<\/p>\n<\/div>\n
This move suggested a coordinated effort to exploit market conditions, potentially to stabilize or even profit from the artificial volatility.<\/span><\/p>\n
How to capitalize on SOL manipulation<\/strong><\/h2>\n
Understanding these tactics can be crucial for traders. By monitoring unusual large transactions from exchanges to market makers, traders might predict potential price drops, in this case, Solana. <\/span><\/p>\n
One strategy to capitalize on such manipulations involves waiting for signs of a forced liquidation event then buying into the dip, anticipating a quick recovery as the market corrects itself. <\/span><\/p>\n
SOL has already recovered around a third of the weekend drop.\u00a0<\/span><\/p>\n
However, this approach requires a keen sense of market timing and an understanding of the risk involved, as not all market manipulations lead to predictable recoveries.<\/span><\/p>\n
For those with a high risk tolerance, such strategies might offer opportunities to profit from the very volatility that others fear.<\/span><\/p>\n
- Solana\u2019s market dropped over 10% during the weekend, potentially caused by Binance\u2019s alleged manipulation.<\/em><\/li>\n<\/ul>\n
![\"SOL\"](\"https:\/\/ambcrypto.com\/wp-content\/uploads\/2025\/02\/SOLUSDT_2025-02-02_09-49-42.png\")