An ADA holder who had kept Cardano for five years swapped 14.4 million ADA worth around $6.9 million into 847,695 USDA stablecoins through a very narrow liquidity pool.
In a single trade, the investor lost more than 90% of his assets.
The transaction was conducted through a narrow liquidity pool, which led to extreme slippage and unfavorable price execution.
The swap occurred just seconds after a small test transaction.
Because liquidity was insufficient, the USDA price jumped to $1.26 before settling near $1.04, illustrating how a single large trade can distort prices in a shallow market.
It remains unclear whether the investor intended to swap to USDA or selected the wrong asset; blockchain records show the wallet had never held USDA before.
This could reflect user error or misjudgment regarding the destination asset.
This incident underscores the need for investors to check pool liquidity before making large trades and to understand differences between stablecoins, particularly those with small capitalization and limited exposure.
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