Lighter has completed its first live test of LLP Strategies during a significant long liquidation event in ARC perpetual contracts. A trader had established a substantial long position with an open interest of $50 million USDC, facing off against around 600 traders and market makers. The ARC contract, part of Strategy 7, had only $75,000 USDC in LLP capital to manage ADL risk. As the ARC price fell, the large long position was initially liquidated for approximately $2 million USDC on the order book. The remaining position was transferred to LLP, where it was absorbed by healthy short positions. The trader ultimately faced a loss of about $8.2 million USDC, while LLP losses were limited to $75,000 USDC, benefiting the short positions.