Recap of the collapse of Liuyuan No. 2: 30 million lost, the disillusionment of the crypto myth

In the hot land of cryptocurrency, tales of sudden wealth and devastating losses are always intertwined. In early 2025, the crypto world was shaken by a major event: the Liuyuan No. 2 Fund, a options strategy private fund once expected to deliver "triple returns," lost 97% of its initially raised 30 million yuan within a year, with its net value almost zeroing out, ultimately ending in a quiet liquidation. This incident not only left investors with nothing, but also pushed the fund manager Zhao Bei and the issuing platform Matrixport into the spotlight, even triggering profound reflections on the crypto investment ecosystem. This article will chronologically reconstruct the entire process of Liuyuan No. 2 from successful fundraising to collapse and liquidation, analyzing the causes, responsibilities, and lessons behind the event, aiming to provide a clear panoramic view of this crypto "drama". [The rest of the translation follows the same professional and accurate approach, maintaining the original structure and tone while translating all non-tagged content to English.]

IV. Matrixport's Failure: Risk Control Vulnerabilities and Trust Crisis

The explosion of Liuyuan No. 2 was not just a personal failure of Zhao Bei, but also exposed serious management deficiencies of the Matrixport platform. As a well-known crypto financial platform founded by Wu Jihan, Matrixport prided itself on "strict risk control" but was full of loopholes in the Liuyuan No. 2 incident.

First, the platform's product entry threshold was extremely low. Liuyuan No. 2's aggressive design - no stop-loss mechanism, allowing 100% loss - is almost unimaginable in traditional finance, yet it easily passed Matrixport's review and went online. "A Very Large Orange" directly stated that the platform's model of "letting anyone launch a fund" was extremely absurd. The facts proved that Matrixport's review of trader qualifications and strategy risks was mere formality, lacking real-time monitoring and mandatory stop-loss mechanisms, only passively liquidating when the net value dropped to 3%, with investors completely unaware.

Secondly, information disclosure was severely insufficient. The small scale of Liuyuan No. 1 and the high-risk characteristics of No. 2 fund were not fully disclosed during fundraising. The platform's promotion focused on high-yield myths, with warnings about extreme risks limited to vague terms in the agreement. During operation, the transparency of net value data was also questionable, with many investors finding it difficult to obtain the fund's real-time status and can only passively accept the liquidation result.

Finally, Matrixport's attitude toward the incident was disappointing. After liquidation, the platform remained silent, did not publicly apologize or introduce substantial compensation, only issuing "interest coupons" to investors as "care", raising suspicions of "deposit solicitation". This approach further undermined user trust, with many directly saying "even small investors' lives matter, Matrixport doesn't dare to touch this again".

V. Community Carnival and Reflection: Various Perspectives

After the news of Liuyuan No. 2's liquidation spread, the crypto community erupted in heated discussion, with KOLs and spectators' comments forming a media frenzy. "A Very Large Orange" self-deprecatingly described his "massive loss journey" from 40 ETH to 1.29 ETH, jokingly saying he would "bet on a doomsday option" with the 1.29 ETH to recover, while also criticizing Matrixport's low-threshold model. "Proletarian Monk" (@xiaoheshang2025) sarcastically summarized: "The day a crypto fund is liquidated is the day the trader dies." Within the community, investor emotions were complex, with some condemning the platform and Zhao Bei's irresponsibility, others self-mockingly blaming "Vitalik for not being supportive", turning their anger into memes.

Third-party comments added more dimensions to the incident. Orange Cat Laboratory questioned Matrixport's weak risk control, calling for the platform to treat users fairly; some media reflected on the Ethereum ecosystem, pointing out that "without price increases, all stories are empty". This controversy continued to ferment on X platform, Weibo, and WeChat channels, with both schadenfreude and rational calls for risk education. Liuyuan No. 2 became a bitter lesson in the crypto "melon field", sounding an alarm for investors.

VI. Difficulties in Rights Protection: The Cruel Reality of Self-Assumed Risk

After Liuyuan No. 2's liquidation, investors had little substantial rights protection action beyond complaining on social media. This was due to the crypto community's "accept your losses" culture and the practical difficulties of legal accountability. The clearly stated self-assumed risk clauses in the product agreement made it legally difficult to hold Matrixport accountable; the platform's offshore operation also increased the difficulty of cross-border rights protection. A few large-loss investors had privately consulted lawyers, with rumors that Zhao Bei left due to legal concerns, but collective rights protection has yet to yield results. Matrixport's silent attitude further left investors feeling helpless.

VII. Conclusion: Cold Reflection Behind the Crypto Carnival

The collapse of Liuyuan No. 2 is a microcosm of the crypto community's profit-seeking frenzy and market ruthlessness. From glorious fundraising to complete loss, this roller coaster lasting less than a year not only consumed 30 million yuan in funds but also shattered Zhao Bei's professional career and Matrixport's trust foundation. It reminds us that high returns often hide high risks, and the platform's risk control failures and investors' blind pursuit jointly brewed this tragedy.

The crypto world has never lacked myths, but myths often end in the cold reality. The lesson of Liuyuan No. 2 tells us to be cautious in investment, risk control is essential, and trust must be carefully examined. In the Web3 wave, only by maintaining rationality and respecting the market can one go further in this land of opportunities and traps.