The native token of 1inch, a decentralized exchange aggregator, experienced a surge of over 58% in value before dropping back down on Monday, with trading volume reaching $597 million, the highest it has been since October 2021.

CoinGlass reported that $3.37 million in leveraged 1inch short positions were liquidated over the past 24 hours. While there is no immediate news that caused this movement, it appears to be following the uptrend set by XRP after its recent legal victory against the SEC. The rally in 1inch has been spurred by futures markets, with open interest rising from $14 million to $125 million across 1inch trading pairs, according to Coinalyze.

However, market depth remains relatively low compared to trading volume, creating a fragile market dynamic. One particular 1inch investor appears to be deploying a trading strategy to prompt a cascade of long position liquidations. Despite losing some of its gains on Monday morning, 1inch is currently trading at $0.505, up by 23.8% in the past 24 hours.