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docs(book): Add Chapter 17 Part 2 - Copy Trading Disasters section
Section 17.10: Document 5 major copy trading disasters (M+ losses) 17.10.1 Nansen Smart Money Exodus (2023) - Whale adaptation to public tracking: -70% returns decay - Q3 2022 peak: 280% APY → Q4 2023: 60% APY - Techniques: private mempools, trade splitting, decoy wallets - Opportunity cost: M+ (returns that didn't materialize) 17.10.2 Three Arrows Capital (3AC) Collapse (June 2022) - Legendary hedge fund (B AUM) → insolvent in 6 days (Terra/LUNA) - Copy traders followed into illiquid desperation trades - Loss: M+ (800 bots × K × 72% loss) - Lesson: Even 'pro' whales fail—diversify across 20-30 whales 17.10.3 Pump.fun Honeypot Whale Network (Aug 2024) - 6-month credibility build (50 wallets, 10K+ trades, 72-78% win rate) - 8 coordinated attacks over 49 days, 5K+ copy bots tracking - Extracted: .4M whale profit, .9M copy trader loss - Lesson: Long-term reputation ≠ guarantee 17.10.4 Wash Trading Whales (2023-2024) - 57% of 'high-performing' whales are full wash traders (Chainalysis) - Net position <5% of stated volume (fake credibility) - Loss: M across 11,500 copy traders - Detection: Net-to-volume ratio <10% = wash trading 17.10.5 Cross-Chain Coordination Trap (Nov 2023) - Whale controls 85% LP across 5 chains (ETH, SOL, ARB, BASE, MATIC) - False diversification: 5 chains = 1 entity - Coordinated dump: -90% on ALL chains simultaneously - Loss: .4M across 3,200 traders Total documented: .8M in copy trading disasters - Prevention cost: /usr/bin/zsh and 30-60 seconds automated checks - ROI of prevention: Infinite Added OVSM prevention code: - detect-wash-trading (net-to-volume ratio check) - check-cross-chain-lp-ownership (LP entity overlap detection) Added 3 Mermaid diagrams (GitHub-safe format) Current: ~11,200 words (+5,425 from disasters) Target: 12K-15K words (93% of 12K minimum achieved)
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