Sahara AI: SAHARA price fluctuation is a chain reaction of contract liquidation

Comparing news, Sahara AI released an update in response to the SAHARA token price fluctuation incident, stating that it has been confirmed that the team and investor tokens were not sold or transferred, that designated market makers Amber Group and Herring Global operated normally during the incident, and that all token smart contracts were safe and secure.

The reason for the incident was a chain reaction of contract leverage bursts: SAHARA contract leveraged long positions continued to accumulate to a record high in the three weeks before June 9, but liquidity was scarce. Selling pressure triggered large-scale automatic liquidation. At its peak, up to $992,000 of SAHARA was liquidated per second. 60% of contract orders were liquidated passively in the first two minutes, the contract price plummeted 64% within 5.5 minutes, and $60 million contract orders were executed within 30 minutes. The contract price was once 27% lower than the spot price, indicating that the clearing speed was faster than the market's absorption capacity.

Large on-chain token transfers are pre-arranged Chainlink CCIP cross-chain bridge contract recharges to provide liquidity for the BNB Chain cross-chain bridge. The team is working with the exchange to determine the cause of the initial selling pressure, and will announce the final investigation results and enhanced measures in the future.