Trader Ogle warned on July 13 that small meme coins with low liquidity can collapse rapidly when a few large holders sell. The warning followed the sharp decline of CASHCAT, a token on the Robinhood Chain that surged over 3,200% before crashing roughly 60% after the launch of a perpetual futures contract. Data shows about 90% of long positions were liquidated. Ogle noted that while some traders achieved million-dollar paper gains, the thin market and concentrated ownership made the asset vulnerable to sudden sell-offs. He contrasted meme coin volatility with slower gains from utility tokens like Bitcoin, Ethereum, and Solana.
Long-time crypto trader Ogle warned that small meme coins with limited liquidity can collapse within minutes when a few large holders decide to sell. He pointed to recent losses around the latest sensation CASHCAT to reiterate the risks in chasing fast-moving tokens where paper gains disappear fast when leverage, thin markets, and concentrated ownership collide.
In a post on X, Ogle made a basic observation about this market: that many people hold hundreds of thousands or millions of dollars in unrealized gains. He wrote, “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.”
The analyst explained that the problem becomes worse if the token is listed on perpetual futures exchanges, where traders borrow funds to place large bets. He gave the example of CASHCAT, built on the Robinhood Chain, which 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.
According to Lookonchain, one trader bought 15 million CASHCAT tokens for about $838 and turned that into a profit of over $1 million. However, had they waited, they would have walked away with nearly $2.9 million. Another trader spent $69 and sold for $711, which would have been worth $2.7 million had they also waited.
However, the asset experienced large liquidations right after the launch of a perpetual contract on Hyperliquid. Data shows CASHCAT’s value crashed by approximately 60% with about 90% of long positions liquidated, intensifying selling pressure and volatility. At the time of writing, the meme coin traded just below $0.16, representing an over 18% dip in 24 hours and more than 30% below its ATH.
In his post, Ogle, an advisor for the Trump family-backed World Liberty Financial, said that while meme coins can produce quick returns, his biggest gains came from utility-focused assets such as Solana, BNB, Ethereum, Litecoin, and Bitcoin. He noted that those investments are slower plays requiring patience, and many traders often lose interest before the assets can deliver larger returns.
