An interesting market incident occurred— a large holder of tokens wanted to take advantage of a stablecoin offering a 20% annualized return, planning to exchange their Bitcoin for this high-yield token. What was initially just a casual trading idea unexpectedly hit a liquidity trap.

Where did the problem arise? The trading pool for that stablecoin simply couldn't handle such a large order. A multi-million dollar exchange order was placed, causing liquidity to dry up instantly, and the token price collapsed accordingly. The BTC transaction price was forcibly driven down to around $24,000, with an absurdly large slippage.

What’s even more painful is that even if the funds are later transferred into that 20% annualized project, relying on interest compounding, it would still be impossible to recover the losses from this wave of decline. This actually reflects a very real issue—high returns often come with high risks and hidden pitfalls. Small pools lack liquidity, and large transactions can easily cause extreme slippage. These are essential insights to understand when entering the space.