I can't figure out a problem: after a certain project skyrocketed from a low point to a high level, the project team started daily buybacks, but the price continued to fall. Why is that?

To put it simply, the market has given it an undeserved valuation. The project reaching this price range has already overextended expectations.

But the project team is really doing buybacks, and they have continuous funding for operations. Shouldn't that stabilize the price?

The key point is—selling pressure outweighs buying power. Who is selling? Large holders who entered early and cashed out at high levels hold a lot of chips. The project team’s buyback funds actually come from early financing, essentially using borrowed money to buy back the chips sold by retail and institutional investors. Once this logic breaks down, buybacks can no longer prevent the decline.