The crypto market is like a wasteland, with every investor believing they hold a compass. Then Falcon had an incident — it’s not just the fall of a protocol, but a complete liquidation of the liquidity illusion.

Do you remember those days at the beginning of 2025? Red gap jumps flickered on the screen, like you were piloting an "Everlasting Supersonic Jet" that suddenly malfunctioned at ten thousand meters altitude.

At that time, Falcon was at its peak. It claimed to be the "perpetual motion machine" of the financial world — stacking liquidity layers of ETH and various Layer 2 networks through complex modular leverage designs, squeezing every bit of on-chain asset value with recursive staking. The story told to users was very appealing: no-recall enhanced returns, a sophisticated "credit magnifier."

But what brought it down wasn’t a hacker attack. The culprit was a rare "oracle feedback poisoning." Several large AI trading agents reacted in unison to BNB volatility with hedging responses in an extremely short period, triggering the logical closed loop of Falcon’s liquidation engine in that instant.

In the following 48 hours, the market revealed its fangs. Liquidity didn’t slowly vanish — it evaporated in an instant. That once-proud "cross-chain liquidity sharing" instantly turned into a conduit for disaster. Confirmation delays in cross-chain bridges under extreme market conditions directly spread the problem from a single chain to the entire ecosystem.