Wallet Trace Links Nov. 1 XPL Liquidations to April Trading Cluster

A new funding trace suggests wallets involved in Plasma (XPL) liquidations on Nov. 1 were connected to an April trading cluster tied to sharp moves in XPL and FARTCOIN.

A funding trace identified a possible connection between the November trading addresses and wallets active in April. Funds associated with the earlier cluster entered a centralized exchange hot wallet shortly before a USDT withdrawal from that wallet reached addresses upstream of the November trades. The withdrawal had a distinctive split pattern that aligned with the two sets of trading addresses. The trace leaves control of the wallets unconfirmed.

On April 3, XPL rose about 42% to $0.167 before falling more than 40% within minutes. Five addresses opened long positions ahead of the rise, withdrew margin as their unrealized gains grew and were then liquidated together. Roughly $32.99 million in short positions were liquidated during the climb.

FARTCOIN rose about 57% over three days to $0.252 before dropping more than 26% on April 9. Six addresses were involved in liquidations near $0.22. The newer activity followed an XPL selloff on Nov. 1.