Crypto trader Ogle warned on July 13 that small meme coins with limited liquidity can collapse within minutes when a few large holders decide to sell. The warning followed recent volatility in CASHCAT, a meme coin that surged 3,200% over the past week before crashing 60% after the launch of a perpetual contract on Hyperliquid. Ogle explained that concentrated ownership combined with leveraged trading on perpetual futures exchanges creates conditions where two or three sellers can trigger rapid price drops in tokens with thin markets.
Ogle Explains Concentrated Ownership Risk in Thin Markets
In a post on X, Ogle observed that many traders hold hundreds of thousands or millions of dollars in unrealized gains. According to him, if even two or three of these traders were to sell, it would trigger a major price drop, especially for smaller meme coins. "When a ton of people have made hundreds of $k or $m in a token, unrealized, in this type of market, it only takes 2-3 of them to sell (if the token is small, especially a meme with little liquidity) for everything to collapse quickly," he wrote.
The analyst explained that the problem became even worse if the token was listed on perpetual futures exchanges, where traders often borrowed funds to place large bets.
CASHCAT Surges 3,200% Then Crashes 60% After Perpetual Launch
Ogle cited CASHCAT, the meme coin built on the Robinhood Chain, as an example. The token jumped more than 3,200% over the past week and briefly pushed its market cap to around $226 million when its price hit an all-time high of $0.2288 per CoinGecko data.
According to Lookonchain, that rally saw a few winners. One trader bought 15 million CASHCAT tokens for about $838 and turned that into a profit of over $1 million. Another trader spent $69 and sold for $711, a 10x return on their investment.
However, as Ogle noted, the asset experienced large liquidations right after the launch of a perpetual contract on Hyperliquid. Data from CoinGecko shows CASHCAT's value crashed by approximately 60% with about 90% of long positions liquidated. At the time of writing, the meme coin was trading just below $0.16, representing an over 18% dip in 24 hours and pushing the coin more than 30% below its all-time high.
Ogle Advocates Utility Tokens Over Short-Term Meme Bets
In his X post, Ogle, who's an advisor for the Trump family-backed World Liberty Financial, said that while meme coins can produce quick returns, his trading experience had seen him make the biggest gains from utility-focused assets such as Solana, BNB, Ethereum, Litecoin, and Bitcoin. According to him, those investments are slower plays that require patience, and many traders often lose interest before the assets can deliver larger returns.
FAQ
What did Ogle warn about meme coins on July 13?
Ogle warned that small meme coins with limited liquidity can collapse within minutes when a few large holders decide to sell, particularly when the token is listed on perpetual futures exchanges where traders use leverage.
How did CASHCAT perform before and after the Hyperliquid perpetual launch?
CASHCAT surged more than 3,200% over the past week, reaching an all-time high of $0.2288 with a market cap of around $226 million. After the launch of a perpetual contract on Hyperliquid, the token crashed approximately 60% with about 90% of long positions liquidated.
What investment approach does Ogle recommend?
Ogle stated that his biggest gains came from utility-focused assets such as Solana, BNB, Ethereum, Litecoin, and Bitcoin, which he described as slower plays that require patience compared to short-term meme coin bets.
