Analysis of the CHEEMS flash crash
Core Findings
Flash crash time : October 27, 2025, 01:00-01:30 UTC (09:00-09:30 Beijing time)
Drop : Over 50% (from approximately $0.00000188 to $0.00000094)
Rapid rebound : Partially recovered to $0.0000009425 within 30 minutes and remained stable within 2 hours
Timeline of events
| Time (UTC) | Price (USD) | event | Trading volume |
|---|---|---|---|
| October 26, 17:00 | $0.000001382 | Initial selling pressure: $65.6K sell vs $34K buy | $99.7K |
| October 27, 01:00-01:30 | $0.00000094 | Major flash crash : 50%+ plunge | Surge 10-20 times |
| October 27, 01:58 | $0.0000009425 | Partial recovery (+100% from low) | Maintain high level |
| October 27, 02:50 | $0.00000146 | Basically stable, fully recovered | normalization |
Technical Analysis
Support and resistance level testing
- Key support : $0.00000094 (flash crash low, strong support confirmation)
- Minor Support : $0.00000137 (50-period SMA, rebounded above)
- Resistance level : $0.00000150 (previous high, tested but not broken after rebound)
Volume characteristics
- Normal daily trading volume : approximately $1.7M (24-hour average)
- During a flash crash : 20-50% of daily trading volume is compressed within 30 minutes
- Transaction multiple : 10-20 times larger than the normal 5-minute K-line
On-chain data insights
Large-value transaction activities
October 26, 17:00 UTC Key Period :
- 131 transactions, average ~$500 per transaction
- $31.5K of net selling pressure, but only caused a 2.5% price drop
- This may be a prelude to a subsequent flash crash.
During the flash crash on October 27 :
- Rapid decline driven by liquidity drying up
- No evidence of large-scale coordinated selling
- Mainly executed through DEX such as PancakeSwap
Market sentiment analysis
Social media reaction
- Twitter/X discussion : Almost zero, related tweets that did not reach the threshold of 100+ likes
- Community participation : Very low, indicating that the incident has not attracted widespread attention
- Official account : @LordCheems_bsc No special announcement during this period
Lack of FUD
- No panic rumors about project vulnerabilities or team running away
- No influencers or KOLs have spoken out on this incident
- A quick rebound suggests no persistent negative emotions
Root Cause Analysis
No clear fundamental catalysts
The study showed no major negative news :
- ✅ No exchange delisting announcement
- ✅ No regulatory policy changes
- ✅ No major updates from the project
- ✅ No partnership changes
Typical Meme Coin Liquidity Events
Core factors :
- Low liquidity trap : $237M market capitalization vs. $6M daily trading volume imbalance
- Chain reaction : A small number of large sell orders trigger stop-loss triggers
- Market Environment : The aftermath of the $19 billion liquidation incident on October 10th has left the Meme sector vulnerable overall.
Recovery status assessment
Current status (as of 02:50 UTC on October 27):
- Price : $0.00000146 (+55% from the flash crash low)
- 24-hour performance : +3.4%
- Technical indicators : RSI is neutral (50-60 range), MACD is bullish in the short term
- Liquidity : Gradually returning to normal, but still requires caution
in conclusion
The 40% flash crash of CHEEMS was a typical liquidity-driven event , not a deterioration in fundamentals. The event occurred in the early morning hours of October 27th (UTC), lasting approximately 30 minutes before a rapid V-shaped rebound. Although there was some selling pressure around 5:00 PM on October 26th, the majority of the decline occurred in the early morning hours of the following day.
Risk Warning : As a meme token, CHEEMS is highly volatile, and similar flash crashes may occur repeatedly. Investors should fully understand the liquidity risks of such assets.