A handful of large sellers can wipe out the value of small meme coins within minutes, warned longtime crypto trader Ogle on July 13, pointing to the recent crash of CASHCAT as a cautionary example. The token, built on Robinhood Chain, plunged roughly 60% after a perpetual futures contract launched, triggering massive liquidations. Ogle stressed that thin liquidity and concentrated ownership make these assets extremely fragile.
The Danger of Unrealized Gains
In a post on X, Ogle noted that many traders hold hundreds of thousands or even millions of dollars in unrealized profits in meme coins. If just two or three of them decide to sell, the price can collapse rapidly, especially for tokens with shallow order books. "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 for everything to collapse quickly," he wrote.
The problem intensifies when a token is listed on perpetual futures exchanges, where leveraged positions amplify volatility. Ogle used CASHCAT as a case study: the coin surged over 3,200% in a week, briefly reaching a market cap of $226 million and an all-time high of $0.2288. According to Lookonchain, one trader turned $838 into over $1 million, while another turned $69 into $711. However, both would have made far more if they had held longer.
Liquidations Wipe Out Leveraged Bets
Shortly after a perpetual contract for CASHCAT launched on Hyperliquid, the token experienced a sharp reversal. Data from CoinGecko shows the price crashed about 60%, with roughly 90% of long positions liquidated. The forced selling added to the downward pressure, causing a cascade of losses. At the time of writing, CASHCAT had recovered slightly to just below $0.16, still down over 18% in 24 hours and more than 30% below its peak.
Ogle, an advisor for the Trump family-backed World Liberty Financial, contrasted meme coins with utility-focused assets. He said his biggest gains have come from tokens like Solana, BNB, Ethereum, Litecoin, and Bitcoin—investments that require patience but offer more sustainable returns. Many traders, he noted, lose interest before these slower plays can deliver.