Traders were caught off guard this week after MYX, the native token of MYX Finance, rocketed from about $0.10 to roughly $16 over the past 60 days. The fast move produced more than $40 million in liquidations within a 24‑hour window, according to on‑chain futures monitoring services.
Market observers flagged a classic short‑squeeze pattern: MYX traded relatively normally between about $2 and $4 before a targeted squeeze lifted the price past $8. Crypto analyst Skew noted that following the squeeze it appeared a large liquidity provider or market maker was heavily “carried out,” amplifying liquidation pain for leveraged traders.
The price action looks particularly detached from on‑chain fundamentals. MYX Finance reports roughly $55 million in total value locked (TVL) and about $5 million in open interest — figures that pale in comparison to larger competitors such as HyperLiquid (about $712 million TVL and $12.8 billion open interest on DeFi trackers). Despite that, MYX’s fully diluted valuation (FDV) sits around $17.7 billion, similar to HyperLiquid’s market cap—a sharp mismatch that raises valuation questions.
Compounding the risk: more than 80% of MYX’s token supply is reportedly locked, leaving only about 197 million tokens circulating. That constrained float, combined with concentrated holdings, makes the asset more vulnerable to price manipulation and outsized moves when liquidity thins.
MYX’s sudden ascent has already pushed it into the top 40 by market cap, but that ranking masks market fragility. Rapid, leverage‑fuelled rallies in small, illiquid tokens often end in violent reversals — exactly the environment that produced the multi‑million dollar liquidations this week. Traders using margin or derivatives should be especially cautious: shallow order books and concentrated supply can trigger cascading liquidations.
What to watch next: on‑chain transfers from large wallets, changes in TVL and open interest, order‑book depth on DEXs and CEXs, and any announcements from MYX Finance that clarify token unlock schedules or liquidity arrangements. Market makers reducing exposure after heavy losses could further tighten liquidity and amplify volatility.
Source: CoinDesk. Read the original coverage for full details.
