Have you been scared by the market trend of FOLKS recently? Ecstatic when it rises, crumbling when it falls—this roller coaster experience has actually been set up long ago. Don't think this is just a short-term fluctuation; the story behind it is far more complicated than you can imagine.

**The crazy drama from a week ago, now is the time for the truth to be revealed**

Time goes back to around December 14. What happened with FOLKS? A typical good news sell-off show. The launch of the S2 incentive program was supposed to be a real improvement in the fundamentals—attracting users to participate in lending and exchanging through a reward mechanism, on-chain activities indeed became active, and the demand for tokens followed suit. This part is genuine.

But the price performance that followed went crazy. It skyrocketed over 200% within 24 hours, briefly reaching around 48 dollars. Since the bottom in November, the increase has approached 24 times. This number sounds a bit off, right?

And then? The price quickly turned around after reaching the peak, with a maximum drawdown of around 80%. From euphoria to being trapped, completion rate 100%.

**On the surface it seems favorable, but deep down it is manipulation**

Why does this extreme fluctuation occur? Two forces are working together:

One is visible — the S2 plan has indeed improved the fundamentals, providing reasons for a rise. This makes many people feel there is evidence to follow, daring to chase the highs.

The other is invisible—small-cap tokens often have a highly concentrated distribution of chips, allowing whales to relatively easily control the price rhythm. The purpose of driving up the price is straightforward: to create liquidity and facilitate offloading near the peak. You see, isn't this just a carefully designed harvest?

**The Real Dilemma Faced by Contract Traders**

If you are trading on the FOLKSUSDT contract, the risk is not just as simple as getting the direction wrong:

First is the high fluctuation double-kill effect. In a market with a single-day fluctuation exceeding 200%, even if your directional judgment is completely correct, the intense oscillation during the day can easily blow up your high-leverage position. Setting the stop-loss too tight will get swept, while setting it too loose will be unbearable. What to do? This is such a dilemma.

Secondly, there is the liquidity trap. At the turning points of sharp rises and falls, market liquidity may disappear in an instant. Your set stop-loss orders may not execute at the price, or they may be forced to execute at a price far below your expectations. The scale of loss may far exceed your imagination.

**The key is to leave this market alive**

What does the story of FOLKS illustrate? The fluctuation of small-cap cryptocurrencies is fierce enough on its own, and when combined with the potential for human manipulation, the risks are multiplied. What you need is not the courage to buy at the bottom, but the wisdom to survive in such an environment. Stay cautious, control leverage, and don’t be dazzled by the numbers of rises — these seemingly clichéd pieces of advice could save your life in a market like FOLKS.