Binance and Coinbase Allegedly Manipulated Solana's [SOL] Price by Sending $62M to Wintermute During Low Volume Weekend

Allegedly, the Binance exchange recently engaged in “flushing” or “liquidation hunting” by sending over $32 million worth of Solana [SOL] to market maker Wintermute during a low volume weekend.

Binance Allegedly Flushed $32M in SOL to Market Maker During Low-Volume Weekend to Push Price Down for Liquidation Hunting tactics.

The exchange sent over $32 million in Solana (SOL) to market maker Wintermute during a low-volume weekend, in a move that appears to be a classic case of “flushing” or “liquidation hunting.” The strategy is designed to push the price of a cryptocurrency down into a lower range, forcing long-standing leverage traders to liquidate their positions.

This tactic is particularly effective on weekends, when trading volumes are naturally lower, making markets more susceptible to manipulation.

According to AMBCrypto’s look at Arkham’s data, Wintermute played its part by selling the SOL at a lower price, thus dumping the price further, only to buy it back at the artificially depressed rates.

Once the dip was manufactured, Wintermute reportedly returned more SOL to Binance than it had initially received, capitalizing on the price difference.

This was a win-win scenario for both entities, but according to crypto commentator MartyParty, “The losers are the leverage traders and the panic sellers.”

Coinbase also sent $30 million in USDC to Wintermute on Solana, to capitalize on the dip.

This move came amid recent claims of insufficient SOL holdings that led to users experiencing delays in their Solana withdrawals.

The market maker's actions suggest a coordinated effort to exploit market conditions, potentially to stabilize or even profit from the artificial volatility.

Understanding these tactics can be crucial for traders. By monitoring unusual large transactions from exchanges to market makers, traders might predict potential price drops, in this case, Solana.

One strategy to capitalize on such manipulations involves waiting for signs of a forced liquidation event then buying into the dip, anticipating a quick recovery as the market corrects itself.

SOL has already recovered around a third of the weekend drop.

However, this approach requires a keen sense of market timing and an understanding of the risk involved, as not all market manipulations lead to predictable recoveries.

For those with a high risk tolerance, such strategies might offer opportunities to profit from the very volatility that others fear.

The price action chart of SOL showed a sharp fall, reaching a low of $207 before rebounding as exchanges stepped in. The weekend buying by exchanges at this point suggested a strategic purchase during the dip.

If these buying patterns continue, SOL could test higher resistances near $235. Conversely, failing to maintain this support could lead to a retest of lower levels.