Polyhedra ($ZKJ) Faces Major Liquidity Collapse and Price Drop

An in-depth post-mortem report has been issued regarding the 80% price collapse of Polyhedra ($ZKJ) on June 15. The report details a systematic liquidity extraction and dumping on PancakeSwap, which led to a dearth of liquidity in the KOGE/USDT pool, ultimately affecting the ZKJ/USDT pool as well. Additionally, regulatory changes with Binance's Alpha rules resulted in reduced rewards, triggering a rapid price decline under the V3 liquidity model and causing a liquidity crisis. Despite the team maintaining ZKJ without selling and providing liquidity, most assets were converted into ZKJ, spreading losses. Moreover, suspicious large deposits by Wintermute into CEXs were observed. Key points include coordinated liquidity removal and dumping on PancakeSwap, liquidity plummet due to Binance rule changes, suspicious activity by Wintermute, over $30 million in liquidity supplied by DEX market makers but failing to defend the market, and forced liquidation of $94 million leverage positions on Bybit.