Lighter caps ARC open interest at $40M after $8.2M whale loss; LP damage $75K

A large leveraged ARC perpetuals long on Lighter unraveled after ARC fell around 6:00 pm ET on Wednesday, according to the platform. Auto-deleveraging engaged as the LLP briefly absorbed 200 million ARC worth $14.7 million; the trader lost about 8.2M USDC while LP losses were held near $75,000 under risk caps. Lighter later set a $40 million ARC open-interest limit and shifted the pair to a capped liquidity strategy with about $100,000 USDC.