A small DeFi project collapsed within just a few hours, and the chain behind it is actually very clear.

What is most frustrating is not how cunning the operators are, but that all the risk signals are laid out on the table, yet retail investors still rush in one after another.

**First, let's see how exaggerated the data is**

The trading volume of this project reached $2.135 billion within 24 hours. For comparison: SOL is at $1.94 billion, BTC is at $8 billion. Is it normal for an obscure little project to have a trading volume close to a quarter of Bitcoin's?

Definitely not normal. What does this indicate? The project itself is nothing special; what is truly powerful is its liquidity trap design. The big players have stirred up the retail investors' FOMO emotions to the peak, and everyone is stepping on each other to enter the market, providing a continuous flow of liquidity, ultimately capturing them all.

**On-chain Timeline Black and White**

On December 19, the team wallet deposited $2.4 million worth of tokens to mainstream exchanges.

On December 21, another wallet was recharged with 2.4 million.

In the early morning of December 22, the critical moment arrived - recharge $6.4 million worth of tokens, and then 4 hours later the project crashed by 75%.

The first wave is a test, the second wave lays the groundwork, and the third wave is the catch. The whole process is like operating a precision machine.

**The most terrifying thing is not the dealer, but human nature**

It's quite common for teams to dump their coins in the crypto space, and on-chain data has always been transparent; anyone can easily check it through a block explorer.

What really baffles people is: why do retail investors, despite being able to see this data, still jump in without hesitation?

This kind of "harvesting show" is staged every day in the cryptocurrency circle. $LIGHT is just one of the cases that have been uncovered.

Upon careful consideration, the fundamental reason retail investors lose money is not actually due to information asymmetry. The information has long been laid out, with danger signals flashing brightly, but why do so many people still choose to turn a blind eye?

The answer may be that simple: greed and luck are more deadly than any tricks of the dealer. You always think you can profit from this wave, and you always feel that this time it won't be your turn.

The result is that one only regrets after being cut.

This is not a technical issue, it's a psychological issue.