DRIFT fluctuates 364.1% within 24 hours: rapid correction after short squeeze rebound

Volatility Overview

In the past 24 hours, DRIFT's price rebounded from a low of $0.034 to a high of $0.1578, currently trading at $0.0457, with a price swing of 364.1%. The 24-hour trading volume significantly increased to about $23 million, up 7.7% from the previous day, indicating high activity.

Brief Analysis of the Cause of Abnormal Movement

- Short squeeze drove the rebound: Subsequent hacker investigations and wallet activities (such as the attacker wallet transferring 185 SOL, worth around $15,000) triggered short covering, pushing the price sharply up from the lows.

- Recovery plan initiated: Drift Protocol announced its recovery plan, focusing on stabilizing TVL (currently about $237 million, a 58% drop from before the incident), though protocol trading volume and fees remain at zero.

- No new major on-chain whale actions reported; volatility mainly originates from leveraged trading liquidations.

Market Opinions and Outlook

The market sentiment in the community is mainly cautious and panicked, considering the rebound as a “liquidity hunt + dead cat bounce” rather than a true recovery. Whales are panic buying the dip, while retail investors chasing the pump are at risk of being trapped; analysts warn of high leverage risks, focusing on the execution of the recovery plan and Solana Foundation security upgrades (STRIDE program, 24/7 monitoring). The market may continue to fluctuate, with TVL recovery and litigation progress (such as the Gibbs Mura investigation) being key points to watch.