Sun Yuchen responded to the abnormal fluctuation of HT: Everything was normal only because some users triggered a series of leveraged positions

On March 10, it was reported that the market fell sharply in the morning due to the influence of macro news, and the price of HT fluctuated abnormally. Sun Yuchen, a member of the Huobi Global Advisory Committee, responded in a message on the social platform: “This time, the Huobi Exchange is operating normally, the wallet is operating normally, the operation is normal, and the background is normal. It is only because some users of the spot and contract HT tokens have triggered the disk phenomenon of leveraged serial positions. At present, all work is being carried out steadily, and there is no sudden phenomenon, just market behavior and volatility.”

Interpretation of this information:

The message reports on the market’s sharp decline on March 10, which was caused by macro news. The price of HT went through abnormal fluctuations, and Sun Yuchen, a member of the Huobi Global Advisory Committee, clarified the situation. He said that the Huobi Exchange is operating as usual, with its wallet, operation, and background functioning normally. The abnormal price movements were caused by some users of spot and contract HT tokens who triggered leveraged serial positions. Sun assured the public that there was no sudden disruption in their work, and the situation was merely a result of market behavior and volatility.

Sun’s message reveals that the recent market decline and abnormal fluctuations in HT’s price were not caused by any internal issues from Huobi. Instead, it was driven by market behavior and specific users triggering leveraged serial positions. This explanation is reassuring to the public, as it implies that Huobi is doing everything in its power to prevent sudden disturbances in their operations. Sun’s confident assurance serves as an attempt to maintain trust between Huobi and its customers.

The message also implies that Huobi rewards leverage trading, which is a risky way of trading that can cause significant losses. By mentioning that specific users triggered leveraged serial positions, Sun is admitting that such activity is happening on their platform. Although leveraged trading can potentially bring in higher returns, it is also much riskier than standard trading. Huobi customers may need to assess their risk appetite and have a thorough understanding of leveraged trading before engaging in such a practice.

Overall, Sun’s message provides valuable insight into the cause of the recent market decline and fluctuations in HT’s price. By clarifying that there were no internal issues with Huobi and that the situation was merely caused by market behavior and specific user actions, customers can feel more confident in continuing their trading activities.