WLFI Falls After USD1 Shock as Whales Add $35 Million

World Liberty Financial (WLFI) has weakened following a shock to its USD1 stablecoin, dropping about 17% after the incident and nearly 8% over the past 24 hours. The USD1 brief weakness—marked in the source text as a coordinated attack that included hacked cofounder accounts, paid influencers spreading FUD and large $WLFI shorts—helped trigger a leverage flush that erased much of the recent rally.

The token’s sharp run during the Mar-A-Lago event between February 16 and 18 formed the cup of a cup-and-handle pattern after a 32% surge, but an RSI divergence from February 3–18 warned the rally could fail. Open interest spiked to nearly $245 million at the February 18 peak, then funding turned negative and open interest fell, consistent with forced liquidations rather than broad spot selling.

Meanwhile, the largest holders increased their stakes from 8.23 billion to 8.56 billion WLFI starting February 19, accumulating about 330 million tokens—roughly $35 million at current prices.

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