Ross Ulbricht’s $12M Memecoin Mistake—How a Trading Error Cost Him Big

• Ross Ulbricht’s memecoin venture resulted in a $12 million loss
• While attempting to provide liquidity on Raydium, he accidentally triggered a price drop of a Pumpfun coin
• He still holds 10% of the ROSS tokens

Apparently, Ross Ulbricht suffered a $12 million loss from a Pump.fun memecoin when he inadvertently triggered a price drop while attempting to provide liquidity on Raydium.

Due to an incorrectly initialized liquidity pool price, an MEV bot instantly seized $1.5 million worth of the token (5% of the supply) and sold it. A second error triggered another $10.5 million loss (35% of supply).

How the Mistake Happened

Last week, Ross Ulbricht’s Solana donation address received 50% of the ROSS (Ross Ulbricht Fund) supply from the developer. His attempt to passively sell these tokens by adding single-sided liquidity backfired when he mistakenly created a pool with Raydium’s Constant-Product Market Maker (CPMM) instead of the intended Concentrated Liquidity Market Maker (CLMM).

That mistake opened the door for an MEV bot, which swooped in, liquidated its holdings, and profited $600,000—sending the token price plunging 90%. Even after losing 40% of supp…

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