Huobi Token flash crashes, recovers quickly- Is there more than meets the eye

ambcrypto.com:

Huobi Token [HT], the native token of the popular cryptocurrency exchange, Huobi Global, flash crashed by more than 60% during Thursday trading hours, falling from $4.74 to $1.83 in a matter of 25 minutes, as per CoinMarketCap.

The token, however, recovered immediately to $3.72. At the time of writing, the token exchanged hands at $3.82. down 20% over the past 24 hours. The precipitous drop placed HT at the top of the biggest crypto losers of the day.

The exchange’s advisor, Justin Sun, termed the crash as a normal market behavior that happened because some users triggered a series of leveraged liquidations. Sun added that Huobi will create a $100 million fund to improve the liquidity depth of HT and other cryptos.

— H.E. Justin Sun 孙宇晨 (@justinsuntron) March 10, 2023

Read Houbi Token’s [HT] Price Prediction 2023-24

As per data from Coinglass, the number of long liquidations for HT surged to $2.55 million as of 9 March, a whopping 13413% increase from the previous day.

Source: Coinglass

The crash could be due to the increasingly negative sentiment that has engulfed the wider cryptocurrency market following the hawkish stance of financial regulators and the recent collapse of the crypto-friendly bank, Silvergate.

Twitter users weren’t too convinced with Justin Sun’s rationale behind the crash and even questioned the idea behind the proposed $100 million fund. Consider this tweet, for instance.