The liquidation of FTX has triggered a token arbitrage mechanism that analysts link to the current weak market sentiment and poor performance of altcoins. Cryptocurrency analyst Willy Woo highlighted that the asset liquidation mechanism, involving "locked-token discount trading + futures hedging," has played a significant role. During FTX's liquidation, locked SOL tokens were sold at discounts exceeding 60% due to limited liquidity, with hedge funds purchasing these tokens and hedging price risk by shorting them in the futures market. This strategy allowed for nearly risk-free returns of 70%–80%.Woo suggests that this approach has spread across the industry, with many projects selling locked tokens to hedge funds, which then hedged and released selling pressure through derivatives. This has made it challenging for retail investors to achieve excess returns, contributing to the overall underperformance of altcoins. The strategy implies that future unlocking selling pressure may have been absorbed in advance, potentially reducing actual selling pressure in the next bull market.