Mango Labs founder Dov has highlighted low liquidity as a key factor behind the recent sharp declines in altcoin prices. According to Dov, market makers are primarily using aggressive market orders and seldom placing limit orders, which destabilizes the market. This practice results in market makers selling off their holdings within a week of a token's listing and subsequently withdrawing liquidity, awaiting new projects. Such actions have caused some altcoins to drop by 70%-80% overnight, even with trading volumes of just tens of millions of dollars.