MYX leveraged its exaggerated gains to capture the spotlight on various media and data platforms, luring eager investors into investing their own cash, leading to a massive market meltdown. MYX is like a powder keg, with the trigger in the hands of major investors. Regardless of whether you're long or short, you're doomed. The market isn't short of opportunities; it's simply the "survivor bias" of those willing to take risks.
Disclaimer: This article strongly discourages anyone from participating in this unusual transaction. This article is not directed at anyone or the project itself, but is provided solely for academic analysis, allowing more people to understand the underlying mechanisms and the underlying reasons behind this.
Part I: MYX Price Explosion: A Quantitative Overview
1.1 Drawing parabolic trajectories
The price trend of the MYX token has exhibited a typical parabolic pattern, with its speed and magnitude reaching extreme levels in a short period of time. A timeline analysis of this process reveals its astonishing growth trajectory:
The token price started to rise from its all-time low of approximately $0.047 in June 2025.
In the first significant rise in August 2025, the price reached a stage high of $2.49 on August 8.
Then, in September 2025, an even more explosive rally unfolded. In just seven days, the price soared by over 1,132%, reaching a new all-time high of over $17. On September 9 alone, the price surged by over 291% in a single day.
1.2 Trading Volume and Market Capitalization Dynamics
Along with the surge in prices, trading volume and market capitalization have also exploded, reflecting the rapid influx of market attention and speculative capital.
Trading volume surged: Driven by the MYX Finance V2 upgrade narrative (which may have been a rationalization), spot trading volume surged on September 7-8, increasing by over 710% to $354 million. During the subsequent price peak, this figure climbed to a staggering $880 million. Such massive trading volumes indicate extremely euphoric market sentiment and the involvement of a large amount of speculative capital.
Market capitalization expansion: During the August rally, MYX's market capitalization exceeded $300 million. On September 8th and 9th, its market capitalization swelled to over $3.5 billion, briefly ranking among the top 35 cryptocurrencies globally by market capitalization.
1.3 Technical indicators of market overheating
Technical indicators clearly show that the market has entered an extremely overbought and irrational state, which is a signal that the risk of a price correction is extremely high.
Relative Strength Index (RSI): The RSI is a key indicator for measuring market momentum and overbought/oversold conditions. During this rally, MYX's 14-day RSI reached 96.21, while the 7-day RSI reached an unprecedented 98.06. Typically, RSI readings above 70 are considered overbought, while readings above 95 indicate a statistically unsustainable speculative frenzy, almost invariably signaling an impending sharp correction.
The interplay of price and trading volume creates a powerful positive feedback loop. The initial price increase, likely driven by concentrated, coordinated buying, successfully captured the market's initial attention. As the price climbed, the percentage increase in trading volume displayed on major exchanges and data aggregators was significant, providing fodder for cryptocurrency news outlets and social media influencers.
The coverage and dissemination of these astonishing figures by media outlets, influencers (KOLs), and data platforms (this article is one of them) quickly created a social consensus about a "hot token" and triggered FOMO among retail investors (similar to the publicity effect of "large orders" from whale traders trading on HL). This process reinforced itself, forming a parabolic upward trajectory. More importantly, this retail-driven inflow of funds provided the massive liquidity necessary for early insiders and market controllers to distribute their token holdings at high prices.
Part 2: Beneath the hood: On-chain forensics and market manipulation indicators
The surge in MYX’s price was not simply a result of market enthusiasm, but rather the result of a series of carefully orchestrated events.
2.1 The engine of the surge: a severe derivatives short squeeze
The derivatives market is the main battlefield and core engine of this price explosion.
Key data: According to Coinglass data, a large-scale liquidation event occurred in the market on September 8, with a total liquidation amount of US$14.63 million, of which as much as US$11 million came from the liquidation of short positions.
Mechanism Analysis: When the MYX price pushes higher and breaks through key technical resistance levels (e.g., $3.69), it triggers the forced liquidation of numerous short positions. These forced short traders must buy MYX in the market to cover their positions, instantly generating immense, involuntary buying pressure. This cascading forced buying creates a vicious cycle, further driving up prices and liquidating even more short positions at higher prices. The 50x leverage offered by MYX perpetual contracts amplifies this effect, making the price extremely sensitive to even small fluctuations.
Fueling the market: Binance's adjustment to the MYX perpetual contract funding rate settlement frequency (increasing it to once every hour) further exacerbated the short sellers' plight. More frequent funding rate settlements increase the cost and uncertainty of holding short positions, effectively trapping short traders in losing positions and making them more vulnerable to price increases.
2.2 Doubts: Precisely Timed Token Unlocks and VC Sell-offs
If the short squeeze was the engine of the rally, then the timing of the token unlocking event revealed the "right timing" for this rally. (A good trick to "play against the enemy's strategy," taking advantage of the market's impression that unlocking always means a decline.)
Coincidence: The price peak coincided perfectly with a major token unlock event. This unlock released 39 million MYX tokens into the market, representing 3.9% of the total supply. This was a significant supply shock for a token with a relatively small circulating supply.
On-chain evidence: After the tokens were unlocked, on-chain data tracking showed that the well-known venture capital firm Hack VC transferred 835,000 MYX to the MEXC exchange, which was a clear signal of preparation for a large-scale sale.
History repeats itself: This isn't an isolated incident. Following a similar token unlock in August, MYX's price plummeted 58%. This suggests a clear market pattern: token unlocks serve as a window for early investors and insiders to take profits, exerting significant selling pressure on the market and signaling a "high probability of falling" for the token.
2.3 Allegations of coordinated manipulation and wash trading
Analyst's Red Flags: Analyst Dominic on X provided a detailed analysis that pointed out multiple red flags pointing to market manipulation: (
Disproportionate Trading Volume: MYX’s daily perpetual swap trading volume suddenly surged to $6 billion to $9 billion, a figure that is completely illogical for a token with a much smaller market capitalization and liquidity, suggesting a large amount of inauthentic trading activity.
Coordinated trading patterns: Identical, programmed trading patterns have been observed across multiple exchanges, including Bitget, PancakeSwap, and Binance. This cross-platform synchronized behavior is highly unlikely to be the spontaneous result of a large number of independent market participants, but rather is more likely to be controlled by a single entity or a coordinated group operating through trading bots.
On-chain fund aggregation: On-chain data shows that a large number of small buy orders are ultimately aggregated into a centralized wallet address. This is a typical manipulation technique used to conceal the true intentions and fund size of a single large player.
Wash trading creates false trading activity. Its purpose is to artificially inflate trading volume and attract retail investors, who view high trading volume as a sign of market health and liquidity. Once these investors are lured into the market, the manipulators can then sell their tokens to them at a high price, completing their profit. The signs observed in the MYX incident are highly consistent with typical characteristics of wash trading.
Part Three: Analysis of a “Must-Kill Game”: A Strategic Review
The core logic of this incident lies in the following: a decisive move in a highly controlled spot market. This was not simply a market frenzy, but a carefully planned, interlocking capital operation. The strategy can be broken down into the following steps:
3.1 Step 1: Laying the foundation - highly concentrated spot market control (high control)
Low Circulating Supply and High Internal Holdings : MYX's total supply is 1 billion, but at its peak, the circulating supply was only approximately 197 million, less than 20% of the total. According to the token distribution plan, core contributors (20%) and investors (17.5%) collectively hold 37.5% of the total supply. These tokens are mostly locked up for a long time, meaning that very little "floating chips" are actually freely traded on the market at any given time.
Advantages of Control : This low-volume, highly concentrated structure creates the perfect conditions for price manipulation. When the vast majority of tokens are controlled by a small number of entities, they can create massive price fluctuations in the spot market with relatively little capital, paving the way for subsequent manipulation in the futures market.
3.2 Step 2: Starting the Engine – Using Spot to Leverage Contracts (Price Manipulation)
Big investors use their control over spot markets to turn the derivatives market into a core battlefield for harvesting their opponents' profits.
Creating a short squeeze : This was the core mechanism of this manipulation. By driving up prices in the spot market, the manipulators were able to precisely push the perpetual swap's mark price higher, pushing it above key technical levels (e.g., $3.69). This action triggered a chain reaction: a large number of short positions were forced to close due to insufficient margin. These forced shorts were forced to buy MYX in the market to cover their positions, creating a massive, involuntary buying order that further pushed the price higher.
Astonishing liquidation data : On September 8th, a total of $14.63 million was liquidated across the network, of which over $11 million came from liquidated short positions. This clearly demonstrates that one of the primary purposes of driving up spot prices is to precisely "hunt" short positions in the contract market.
3.3 Step 3: Expanding the Results – “Pull the Market” as a Marketing Strategy (Attracting Competitors)
The wildly surging "marketing effect" is a crucial part of this strategy. Driving the price of a coin skyward is itself the most effective marketing tactic.
Creating FOMO : The coin surged over 1,132% in just eight days (September 1st-8th), and on September 9th, it briefly broke into the top 35 of CMC's global market capitalization, quickly capturing the attention of the entire market. This parabolic surge, broadcast across major media outlets and social media platforms, created a strong FOMO (Fear of Momentum) among retail investors.
Attracting new counterparties : This extreme market sentiment successfully attracted a large number of new traders. Traders attracted by rising prices opened long positions to chase the gains, while those attracted by high funding rates and the expectation of a pullback opened short positions. Regardless of the direction, these traders became the "counterparties" needed by the manipulators, providing market depth and liquidity and paving the way for the next round of harvesting.
3.4 Step 4: The Ultimate Goal - Selling and Reaping at High Prices (Breaking Up Long and Short Positions)
The ultimate goal of this carefully planned rally is clearly to create exit opportunities for interested parties and reap the market in both directions.
Perfect synchronization with token unlocking : The peak in price coincided with the unlocking of 39 million MYX tokens. The pump created a perfect window of ample liquidity and consistent bearish momentum.
On-chain evidence : Hack VC, a prominent venture capital firm, immediately transferred approximately $2.15 million worth of MYX tokens to exchanges after the tokens were unlocked. This suggests that retail investors served as "exit liquidity" for insiders. Or was this a bearish tactic played to retail investors and analysts?
Two-way harvest : The goal of this game is to win both the long and short sides.
In the process of upward movement , by triggering the short position, the short position is harvested, and vice versa.
After the spot distribution is completed at the price peak , the manipulators can reverse course and short. As they stop supporting the market and begin selling, the price inevitably plummets (for example, the unlocking in August caused a 58% price drop). At this point, all long positions bought at the top will be liquidated. Regardless of whether they are long or short, the trigger for the explosion (the spot price) is controlled by others. Whether the position is liquidated or profitable depends on the mercy of others.
In summary, MYX's surge wasn't a natural market reaction to its technical or fundamentals, but rather a maneuver orchestrated in the derivatives market by leveraging highly concentrated spot market control and using spot prices as leverage. The core objective was to attract a large number of traders to become counterparties through sensational marketing, thereby precisely liquidating short positions and creating an ideal liquidity environment for those interested in selling newly unlocked tokens at high prices, ultimately achieving a two-way market harvest.
Part 4: Summary
These seemingly independent events—the V2 new product narrative, the short squeeze, the token unlocking, and the allegations of wash trading—are actually part of a tightly linked, meticulously orchestrated strategy. First, the actors knew the date of the 39 million token unlock. To sell at the highest price during this period, they had to create significant market demand in advance. To do so, they heavily promoted the V2 upgrade narrative, either through official channels or through social media, providing a plausible "fundamental" explanation for the impending price increase. Then, the actors likely used trading bots to conduct wash trading on major exchanges, creating the illusion of high trading volume and slowly inflating the price. When the price increase attracted the first wave of short sellers, the trap was set.
The manipulator then invested a critical amount of capital, driving the price sharply above the crucial margin call level, triggering a massive short squeeze. The buying power generated by the forced liquidation of short positions now fueled the parabolic price surge, eliminating the need for the manipulator to invest significant capital themselves. Finally, at the peak price, when market FOMO was at its peak and the tokens were unlocked, they secured their coveted exit window: an extremely high sell price and a massive pool of retail investors. The newly unlocked 39 million tokens flooded the market, and retail investors unfortunately became their "exit liquidity."
May we always maintain a heart of awe for the market.
