Firstly, it's very funny to watch a manipulator screw up!
Market manipulator liquidated trying to short Curve
The strategy involved building up a hefty short position on Aave, borrowing a total of 92 million CRV against 57 million USDC collateral over the last few days. Then 20 million CRV was transferred to OKEx exchange and it was presumably dumped — shortly after, the price began a rapid descent.
It appeared that Eisenberg was targeting the liquidation of Curve founder Michael Egorov’s large long position, also on Aave. At a CRV price of $0.26, this position would be automatically liquidated by Aave, selling the CRV collateral, pushing the price further down and further boosting the short’s profitability.
Avraham should have stuck to the easy meat, instead he went for a token that has defenders with deep pockets, hence they ended up screwing him.
Having said that, what this manipulator - aka ponzishorter.eth - is doing should be a warning to everyone as to how deeply shit many defi algorithms truly are. The landscape is now filled with pools either in need of oxygen or dead. Many dead pools are just shitcoins and truly worthless, but many useful pools have such low liquidity that they are vulnerable to attack. Again, these are not "hacks" or code exploits, they are exploiting weak and badly-programmed smart contracts.
THAT should be the message to defi designers: improve your protocols.
That is deeply funny - imagine his emotions as he sees his fuckup.
Still, he seems unrepentant. Abusing weak algos is also part of the game.