While the broader crypto market was ripping higher on Wednesday, bitcoin (BTC) briefly plunged 30% to below $48,000 on decentralized perpetuals exchange Lighter in a violent move that lasted seconds.

The flash crash stood in sharp contrast to price action elsewhere. During the same session, bitcoin surged from below $64,000 to above $69,000, marking one of its strongest intraday rallies in weeks.

The extreme move appeared to have been isolated to Lighter, where thin liquidity amplified what would otherwise have been a routine trade. In shallow order books, even modest sell pressure can trigger exaggerated price swings, producing so-called flash crashes that don’t reflect the broader market.

That’s likely what happened on Lighter. A single…