A case involving a micro-cap coin is a warning to everyone. An investor started with an initial holding of 50,000 USDT but was left with only 6,000 USDT. What exactly happened behind the scenes?

The problem lies in liquidity. This project has a market cap of only around 600,000, and its trading volume is virtually nonexistent. When you hold such a large position, you are effectively the major shareholder of this coin. As long as you don't sell, the price slowly declines; once you try to sell, there aren't enough counterpart orders to absorb the sell-off.

Specifically, in this case: from the initial holding to now, the value has been halved to 25,000 USDT. When it was time to sell, the issues became apparent—slippage was extremely severe, and limit orders placed in batches were essentially ineffective. The final result was that, within a short period from yesterday to today, the account value of 25,000 USDT plummeted straight down to 6,000 USDT.

Common features of such projects include: artificially low market cap, sparse trading volume, and zero depth. Once a large holder wants to exit, a liquidity black hole will swallow your gains. This is not market volatility; it is a structural trap. Retail investors unlucky enough to step into such coins should have only one option—cut losses early and do not hope for a rebound.