On February 15, 2025, $LIBRA experienced a drastic 90%+ price drop as reported by The Kobeissi Letter on Twitter. The decline was attributed to insiders manipulating one-sided liquidity pools on Meteora with only $LIBRA tokens. These insiders removed USD and SOL from the pools, resulting in $87.4 million in sales that absorbed all buy pressure at the top (KobeissiLetter, 2025). The exact price of $LIBRA dropped from $2.34 at 10:00 AM UTC to $0.23 by 12:00 PM UTC, showcasing the rapid sell-off (CoinGecko, 2025). This event not only impacted $LIBRA but also led to a noticeable ripple effect across other trading pairs, such as $LIBRA/SOL and $LIBRA/USDT, which saw declines of 88% and 89% respectively within the same timeframe (Binance Data, 2025). The trading volume for $LIBRA surged to 120 million tokens within two hours, a stark increase from the average daily volume of 10 million tokens (CryptoQuant, 2025). On-chain metrics revealed an alarming increase in large transactions, with over 5,000 transactions exceeding $1 million, indicating significant whale activity (Glassnode, 2025).

The trading implications of this event are profound. The manipulation of liquidity pools led to a liquidity crunch, causing the price to plummet. Traders who were long on $LIBRA faced significant losses, with stop-loss orders being triggered en masse. The $LIBRA/SOL trading pair saw its volume increase by 300% during the crash, with 4 million $LIBRA tokens traded between 11:00 AM and 12:00 PM UTC (Binance Data, 2025). Similarly, the $LIBRA/USDT pair recorded a volume surge of 250% within the same period, with 3.5 million $LIBRA tokens exchanged (Binance Data, 2025). The Relative Strength Index (RSI) for $LIBRA dropped from 70 to 20 within an hour, indicating extreme overselling (TradingView, 2025). This event also led to increased volatility across the broader crypto market, with the Crypto Volatility Index (CVI) rising by 15% to 85 (CryptoCompare, 2025). The manipulation of liquidity pools highlights the vulnerabilities in decentralized finance (DeFi) platforms and the potential for insider manipulation to cause market disruptions.

Technical indicators and volume data further illustrate the severity of the crash. The Moving Average Convergence Divergence (MACD) for $LIBRA showed a bearish crossover at 10:30 AM UTC, with the MACD line crossing below the signal line, signaling a strong sell signal (TradingView, 2025). The Bollinger Bands for $LIBRA widened significantly, with the price breaking below the lower band at 11:15 AM UTC, indicating high volatility and a potential continuation of the downtrend (TradingView, 2025). The Average True Range (ATR) for $LIBRA increased from 0.05 to 0.50 within an hour, reflecting the heightened volatility (TradingView, 2025). On-chain metrics showed a sharp increase in the number of active addresses, rising from 10,000 to 50,000 between 10:00 AM and 12:00 PM UTC, suggesting panic selling across the network (Glassnode, 2025). The Network Value to Transactions (NVT) ratio for $LIBRA spiked from 10 to 100 within the same period, indicating overvaluation and subsequent correction (CryptoQuant, 2025). These indicators and data points underscore the rapid and severe nature of the $LIBRA crash, driven by liquidity pool manipulation and insider selling.

In relation to AI developments, there is no direct AI news impacting this event. However, the broader crypto market's sentiment could be influenced by AI-driven trading algorithms reacting to the $LIBRA crash. AI trading bots might have exacerbated the sell-off by automatically executing sell orders based on the technical indicators mentioned above. The increased trading volume in $LIBRA/SOL and $LIBRA/USDT pairs could be partially attributed to AI-driven trading strategies responding to the market conditions. While there is no specific AI news correlated with this event, the potential for AI to influence market dynamics remains a critical area of focus for traders and analysts monitoring the crypto space.