- Analyst Budhil Vyas flagged the rally as “liquidity hunting” by whales.
- Traders used spot buys and futures to manipulate demand and price.
- Similar patterns are seen in South Korean exchange delistings like Upbit.
Alpaca Finance (ALPACA) is at the centre of controversy after a sudden 1,000% rally in the days following Binance’s announcement to delist the token.
While such a notice usually triggers a steep decline in asset value, ALPACA’s price trajectory defied market norms.
The spike has raised concerns over potential manipulation, with experts pointing to deliberate strategies by large traders to drain market liquidity.
Binance stated on 24 April that it would delist ALPACA and three other assets, effective 2 May.
In contrast to the expected outcome, ALPACA’s value rose sharply, then dropped 34.5% in a single day.
ALPACA trades at $0.55 after extreme volatility
Data from BeInCrypto shows that ALPACA traded at just $0.02 before the delisting announcement.
It then surged as high as $1.27 before falling back to $0.55 at the time of writing.
The spike was not mirrored by the other three tokens set for delisting, which all saw declines.
This has led many analysts and traders to believe that the token was targeted by entities engaging in aggressive liquidity extraction.
Market analyst Budhil Vyas described the activity as a classic example of “liquidity hunting.”
He explained that whales may have initially driven down the price to spark panic and forced liquidations.
Then, shortly before the two-hour delisting deadline, they executed a rapid 15X price pump.
The aim, he said, was to drain remaining market liquidity before the token became illiquid post-delisting.
According to Vyas, no substantial accumulation occurred, meaning the rally was not based on investor confidence or platform developments.
Futures trading tactics fuelled the rally
Further details were shared by crypto trader Johannes in a recent X post, highlighting how the structure of perpetual futures markets may have enabled the ALPACA price rally.
Traders allegedly took large long positions in futures while simultaneously buying ALPACA in the spot market to artificially boost demand.
Since they held a majority of the supply, selling pressure was limited, allowing the price to climb significantly.
This tactic works because perpetual futures contracts often remain liquid even when the underlying asset is delisted from spot exchanges.
When the token is removed from Binance, forced closures of positions can occur with minimal price slippage, allowing profits to be locked in.
The approach depends on short-term market dominance and access to large capital reserves, effectively crowding out retail participants.
Similar trends were observed in South Korea
The ALPACA case is not isolated. DeFi analyst Ignas noted that similar behaviour has occurred during token delistings on South Korean exchanges like Upbit.
In such cases, tokens experience sudden price pumps as retail investors rush to exit positions, or speculators try to capitalise on restricted inflows before the trading window closes.
One example cited was Bitcoin Gold (BTG), which surged 112% after Upbit announced its removal from the platform.
Ignas said delisting announcements can now generate as much speculative activity as token listings.
This dynamic has caught the attention of analysts who believe that “pump → delist” cycles may be emerging as a repeatable pattern in some trading circles.
These trends suggest a growing need for investor education and possibly tighter regulation, particularly when exchange decisions can be exploited for strategic gains.
