{"id":307544,"date":"2023-03-10T11:30:49","date_gmt":"2023-03-10T11:30:49","guid":{"rendered":"https:\/\/cryptoslate.com\/?p=307544"},"modified":"2023-07-23T10:19:29","modified_gmt":"2023-07-23T09:19:29","slug":"justin-sun-sets-up-100m-huobi-liquidity-fund-following-ht-flash-crash","status":"publish","type":"post","link":"https:\/\/cryptoslate.com\/justin-sun-sets-up-100m-huobi-liquidity-fund-following-ht-flash-crash\/","title":{"rendered":"Justin Sun sets up $100M Huobi liquidity fund following HT flash crash"},"content":{"rendered":"<p>Huobi has set up a $100 million liquidity fund following a <a href=\"https:\/\/cryptoslate.com\/huobi-token-saw-a-90-flash-crash-community-blames-high-sales-market-downturn\/\">90% flash crash<\/a> of the exchange's Huobi Token (<a href=\"https:\/\/cryptoslate.com\/coins\/huobi-token\/\">HT<\/a>) on March 9.<\/p>\n<p>The exchange's global adviser Justin Sun <a href=\"https:\/\/twitter.com\/justinsuntron\/status\/1634033317241602048?s=20\">confirmed<\/a> this development, adding that the funds have been sent to the exchange.<\/p>\n<p>HT is yet to recover from its flash crash fully. According to <em>CryptoSlate's<\/em> data, the token is down 21% and is trading for $<span class=\"holepunch holepunch-coin_price_usd\">3.80 as of press time.<\/span><\/p>\n<h2>Why Huobi is setting up the 100M liquidity fund<\/h2>\n<p>According to Sun, HT's sudden collapse was caused by &#8220;a few users, &#8221; triggering a cascade of forced liquidations in the spot and HT contract markets. However, he\u00a0<a href=\"https:\/\/twitter.com\/justinsuntron\/status\/1633981639377182720?s=20\">added<\/a> that these fluctuations were simply a result of market behavior.<\/p>\n<p>Kaiko data researcher Riyad Carey <a href=\"https:\/\/twitter.com\/riyad_carey\/status\/1633959091381870595?s=20\">said<\/a> the HT token had around $2 million worth of sell orders against $600,000 buy orders five minutes before the crash. In addition, the broader crypto market witnessed a massive sell-off during the same period, liquidating over $300 million in long positions.<\/p>\n<p>Sun said Huobi would improve its multi-currency liquidity by setting up the $100 million liquidity fund to forestall a future recurrence. He added:<\/p>\n<blockquote><p>&#8220;We will continue to improve the liquidity depth of main cryptocurrencies and HT token, strengthen leverage risk warnings and liquidity capabilities.&#8221;<\/p><\/blockquote>\n<p>Meanwhile, the Tron founder promised Huobi would &#8220;<span class=\"css-901oao css-16my406 r-poiln3 r-bcqeeo r-qvutc0\">bear all leverage-through position losses on the platform [that] resulted from this market volatility event of <\/span><span class=\"r-18u37iz\">HT<\/span><span class=\"css-901oao css-16my406 r-poiln3 r-bcqeeo r-qvutc0\">.&#8221;<\/span><\/p>\n<h2>Huobi sees outflows<\/h2>\n<p>In the last 24 hours, Huobi's reserve dropped by $72.4 million, according to CryptoQuant's data.<\/p>\n<p>CryptoQuant data <a href=\"https:\/\/twitter.com\/cryptoquant_com\/status\/1634096819369295880?s=20\">showed<\/a> that the exchange saw a $33.1 million outflow in Bitcoin (<a href=\"https:\/\/cryptoslate.com\/coins\/bitcoin\/\">BTC<\/a>), $10.3 million in Ethereum (<a href=\"https:\/\/cryptoslate.com\/coins\/ethereum\/\">ETH<\/a>), a cumulative flow of $13.9 million in other altcoins, and $14.8 million in stablecoins.<\/p>\n<p>DeFiLlama <a href=\"https:\/\/defillama.com\/protocol\/huobi\">data<\/a> corroborated that Huobi has seen outflows during the reporting period. The data aggregator said the exchange's outflow was $47.74 million.<\/p>\n<figure id=\"attachment_307581\" aria-describedby=\"caption-attachment-307581\" style=\"width: 724px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-307581\" src=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/03\/Screenshot-2023-03-10-114707.jpg\" alt=\"Huobi Outflows\" width=\"724\" height=\"507\" srcset=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/03\/Screenshot-2023-03-10-114707.jpg 724w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/03\/Screenshot-2023-03-10-114707-300x210.jpg 300w\" sizes=\"(max-width: 724px) 100vw, 724px\" \/><figcaption id=\"caption-attachment-307581\" class=\"wp-caption-text\">Source: DeFillama<\/figcaption><\/figure>\n<p><span style=\"color: #383838; font-size: 16px;\">Meanwhile, the exchange saw an inflow of $87.22 million that the $100 million liquidity fund heavily influenced.<\/span><\/p>\n<p>Nansen data <a href=\"https:\/\/portfolio.nansen.ai\/dashboard\/huobi\">showed<\/a> that Huobi reserves hold $2.8 billion in digital assets. The exchange's native token accounts for 26.61% of its reserves, while Tron's <a href=\"https:\/\/cryptoslate.com\/coins\/tron\/\">TRX<\/a> makes up roughly 20%.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Huobi has set up a $100 million liquidity fund following a 90% flash crash of the exchange&#8217;s Huobi Token (HT) on March 9. The exchange&#8217;s global adviser Justin Sun confirmed this development, adding that the funds have been sent to the exchange. HT is yet to recover from its flash crash fully. According to CryptoSlate&#8217;s [&hellip;]<\/p>\n","protected":false},"author":720,"featured_media":344433,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[39,76736],"tags":[77001,77811],"prediction_market_topic":[],"post_folder":[],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v21.9 (Yoast SEO v21.9.1) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Justin Sun sets up $100M Huobi liquidity fund following HT flash crash<\/title>\n<meta name=\"description\" content=\"CryptoQuant&#039;s data showed that Huobi&#039;s reserve dropped by $72.4 million in the last 24 hours.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/cryptoslate.com\/justin-sun-sets-up-100m-huobi-liquidity-fund-following-ht-flash-crash\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Justin Sun sets up $100M Huobi liquidity fund following HT flash crash\" \/>\n<meta property=\"og:description\" content=\"CryptoQuant&#039;s data showed that Huobi&#039;s reserve dropped by $72.4 million in the last 24 hours.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/cryptoslate.com\/justin-sun-sets-up-100m-huobi-liquidity-fund-following-ht-flash-crash\/\" \/>\n<meta property=\"og:site_name\" content=\"CryptoSlate\" \/>\n<meta property=\"article:published_time\" content=\"2023-03-10T11:30:49+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-07-23T09:19:29+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/03\/huobi-abstract.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"630\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Oluwapelumi Adejumo\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@cryptoslate\" \/>\n<meta name=\"twitter:site\" content=\"@cryptoslate\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Oluwapelumi Adejumo\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"NewsArticle\",\"@id\":\"https:\/\/cryptoslate.com\/justin-sun-sets-up-100m-huobi-liquidity-fund-following-ht-flash-crash\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/cryptoslate.com\/justin-sun-sets-up-100m-huobi-liquidity-fund-following-ht-flash-crash\/\"},\"author\":{\"@type\":\"Person\",\"@id\":\"https:\/\/cryptoslate.com\/author\/oluwapelumi-adejumo\/#person\",\"name\":\"Oluwapelumi Adejumo\",\"url\":\"https:\/\/cryptoslate.com\/author\/oluwapelumi-adejumo\/\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/cryptoslate.com\/author\/oluwapelumi-adejumo\/\"},\"image\":{\"@type\":\"ImageObject\",\"@id\":\"https:\/\/cryptoslate.com\/author\/oluwapelumi-adejumo\/#authorimage\",\"url\":\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2025\/12\/profile-photo-oluwapelumi-adejumo-300x300.jpg\",\"contentUrl\":\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2025\/12\/profile-photo-oluwapelumi-adejumo-300x300.jpg\",\"caption\":\"Oluwapelumi Adejumo\"},\"jobTitle\":\"Senior Reporter\",\"description\":\"Oluwapelumi values Bitcoin's potential. 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