A seasoned trader shared a review of his operations during a certain token hacking incident, starting from a cost basis of 0.016. This case is worth a deep dive.

**Preparation and Risk Management**

Back in early November, this trader accumulated a $200,000 spot position in BROCCOLI714 at a cost basis of 0.016, while simultaneously establishing a $500,000 perpetual contract arbitrage hedge on a major trading platform. Since the market manipulators' usual tactic was to rapidly push prices up within a few hours and then immediately dump, he set up an alert system for any token with a 30% increase within 1800 seconds.

**Anomalous Signals Triggered by the Hacker Incident**

When a large price discrepancy appeared between the spot and futures markets, both alert systems sounded simultaneously. His first reaction was to close the arbitrage hedge—originally a $500,000 position, the spot value at this point soared to $800,000, theoretically locking in a $300,000 profit.

But then he reconsidered. This phenomenon was too abnormal. Historically, he had never seen market makers aggressively push up the spot price while ignoring the spread. Upon inspecting the order book depth, he found a critical detail: on one exchange, the bid side had a $5 million buy wall at 10% depth, while the futures side only had $50,000 in depth. Even more exaggerated, the token's market cap was only $40 million at the time, yet there was a $26 million buy order hanging on the spot order book.

Combining these abnormal data points, he deduced the most plausible explanation: either the account was hacked, or there was a serious bug in the market-making algorithm. No rational market maker would behave so recklessly; this simply defies normal trading logic.

This incident also highlights the importance of quickly identifying abnormal signals and calmly analyzing order book depth during extreme market anomalies.