Day trader achieves daily profit of $627,000 — The reality of market manipulation seen in ZREAL trading

As meme coin trading heats up again, a day trader has become a hot topic after turning an initial investment of $285 into a profit of $627,000 in just one day. However, blockchain analysis has revealed that there is strong suspicion of market manipulation behind this transaction.

From just $285 to $620,000 — The abnormal rise and fall of the meme coin “ZREAL”

The day trader targeted a meme coin called “ZREAL.” According to public data, the trader initially purchased approximately 66.3 million ZREAL tokens worth about $285. Subsequently, amid a surge in buy demand from small investors, they sold about 10 million tokens for $210,000. Holding the remaining 46.3 million tokens, the unrealized profit has reached $417,000.

Since its launch, ZREAL tokens have rapidly gained attention, with over 7,000 community members on X (formerly Twitter). The 24-hour trading volume reached $18 million. At first glance, it appears to be a lucky investment driven by market enthusiasm.

Blockchain analysis reveals “insider” behavior

However, an investigation by the on-chain data analysis platform “Lookonchain” shows that the situation is not just simple profit from price appreciation. The problematic wallet executed hundreds of market sell orders continuously over about 10 hours on Monday.

This abnormal pattern is characteristic of traders known as “snipers” in the meme coin industry. Snipers obtain project information before public release and establish positions before launch. Then, as the official public launch causes the price to rise, they execute large-scale sell-offs.

What is sniper strategy — How market manipulation works

The sniper trading method is as follows: insiders with prior information from project insiders use bots to buy large amounts of tokens at low prices early on. Then, during the official launch, amid a surge in buy demand from individual investors, they rapidly inflate the buy price through hundreds of consecutive sell orders and sell at the peak.

Individual investors, unaware of this manipulation, are attracted by the soaring charts and buy in. As a result, snipers secure enormous profits, while late small investors suffer losses—a cycle that repeats.

History repeats — Hayden Davis’s exposé and the dark side of meme coins

This kind of market manipulation came into the spotlight in early 2025. Hayden Davis, appearing on a podcast by YouTuber Coffezilla, confessed to being involved in the issuance of several famous meme coins (including MELANIA and LIBRA).

Davis’s testimony revealed that some meme coin issuers function as mechanisms to siphon liquidity from naive individual investors, and that insiders are systematically manipulating the market. His revelations became a symbol of the lawless nature of the meme coin market.

The danger shown by Pump.fun’s $1.2 billion daily trading volume

ZREAL was traded on “Pump.fun,” a Solana-based meme coin launch platform. In early January 2026, the platform achieved a record daily trading volume of $1.2 billion.

This record-breaking trading volume indicates that meme coin enthusiasm is reigniting. After a peak in 2025, the frenzy subsided, but small-scale excitement has been observed again at the start of the new year. However, behind this market expansion, there is a possibility of market manipulation by malicious traders like snipers.

Warning signs individual investors should know

According to a report published by Solidus Labs in May 2025, 98% of tokens issued on Pump.fun could be scams. In response, Pump.fun argued that “Solidus Labs lacks a basic understanding of meme coins,” but statistical warnings cannot be ignored.

Like the day trader with ZREAL, it is theoretically possible to make huge profits in a single day. However, many of these success stories are based on unfair advantages such as early market entry and insider information.

When individual investors participate in meme coin trading, they should pay attention to the following points: verify on-chain data behind rapidly rising charts, look for signs of continuous large sell orders, and carefully assess whether there is prior information from project insiders or market opacity.

The profits of a day trader in one day heavily depend on timing and informational advantages. To prevent such illegal activities from recurring amid market enthusiasm, it is urgent for investors to improve their literacy and awareness.