TechFlow news, June 17 — Preliminary investigation by Polyhedra shows that the sharp price drop stemmed from multiple factors: coordinated withdrawals of substantial liquidity from the ZKJ/KOGE pool on PancakeSwap by several addresses, followed by concentrated sell-offs; Wintermute depositing over 3.39 million ZKJ tokens into centralized exchanges during the crash; and a subsequent wave of leveraged position liquidations, with approximately $94 million in long positions forcibly closed within two hours.
Early adjustments to Binance Alpha mining rules may have weakened the stability of the relevant liquidity pools, creating conditions for this event. Although the ZKJ team attempted to mitigate selling pressure by adding around $30 million worth of liquidity, it failed to prevent the price collapse.
