A Chinese trader named Vida, who founded Equation News, revealed on the X platform that he reportedly gained close to $1 million from the hacking event involving the BROCCOLI714 token.
Vida explained that his profits came from exploiting discrepancies between spot and futures prices by spotting abnormal price fluctuations early on.
He detailed that when BROCCOLI714’s price surged over 30% within an hour, he promptly liquidated his pre-existing arbitrage positions. These hedge positions initially valued at $500,000 each escalated to $800,000 in the spot market and $500,000 in futures. By closing all these arbitrage trades immediately, Vida secured a profit of $300,000.
Subsequently, Vida observed a massive buy order worth $5 million with a 10% buy depth on Binance’s BROCCOLI714 spot market. In stark contrast, only about $50,000 worth of buy orders existed at similar depth for the futures contract. At this point in time, BROCCOLI714 had a market cap of approximately $40 million according to its main order book while total buy orders summed up to around $26 million. Vida inferred this might indicate either an account breach or significant malfunction within the market maker’s software system.
He suspected that these substantial funds totaling roughly $26 million were being used artificially to pump up the spot price which would then elevate futures prices before exiting those contracts. He anticipated continued upward movement unless those large spot-side purchase orders were withdrawn by whoever was manipulating them.
During this episode, Vida actively purchased BROCCOLI714 USDT perpetual futures every 5-10 seconds through his trading interface. The fact these trades executed suggested that any circuit breaker protections had expired for this contract—introducing liquidation risk into play. Taking advantage of this window of opportunity led him to open a long position near $200K at an average entry price around $0.046 per token.
According to him,the hacker partially disabled parts of the order book next which triggered risk control mechanisms kicking in.Vida then began offloading all his long holdings across both spot and future markets without concern for cost basis.By adding another $200K onto his initial stake, he ultimately amassed roughly $1.5M cash proceeds from these maneuvers.
Latterly,Vida confirmed complete depletion of liquidity as hacker cleared out entire order book.He proceeded opening short position sized about $400K near ~$0.065 level before closing it once prices fell close down toward $0.02 mark.
Nonetheless,it is crucially important to recognize leverage trading amid already volatile crypto markets carries extremely high risks including potential total loss of invested capital including principal amounts.
This should not be taken as financial advice.&em>