Decentralized derivatives platform Lighter responded on its X platform to a failed attack by a whale attempting to go long on ARC. The LLP Strategies mechanism underwent its first real-world test in the past few hours, demonstrating that the system functioned as expected, protecting both LLP holders and traders' interests. A trader established a large long position relative to the market size on an ARC perpetual contract, with approximately 600 other traders and market makers holding the counterparty positions on the platform. The open interest reached a peak of 50 million USDC. LLP Strategies limited downside risk through "strategy isolation" while preserving upside potential during price rebounds. Ultimately, the large long position holder lost approximately 8.2 million USDC, with LLP losses limited to 75,000 USDC. The short position holder who took the risk profited. Lighter stated that this incident validated the risk isolation and loss cap control capabilities of LLP Strategies under extreme market conditions.