Decentralized perpetual exchange MYX Finance is the latest project at the center of airdrop controversy, after its token surged 1,000% in 48 hours and triggered a massive short squeeze that liquidated $40 million on Tuesday.

Blockchain analytics firm Bubblemaps shared evidence that roughly 100 sybil-linked addresses received 1% of the MYX total token supply, worth about $200 million at its fully diluted valuation of $17 billion. 

All those addresses claimed their MYX tokens at around the same time, with no prior activity to the airdrop. They tied back to a single entity that would have claimed $170 million from the airdrop.

Bubblemaps suggested the event might have been the “biggest airdrop sybil of all time.”

This story is an excerpt from the Unchained Daily newsletter.

A Sybil attack occurs when a single entity creates and controls multiple fake identities within a decentralized network to gain disproportionate influence or manipulate the system for malicious purposes.

The MYX team responded to Bubblemaps’ post, saying it had implemented anti-sybil measures towards bots that wash traded extensively, but other campaign rewards were based on genuine trading volume.

“Prior to launch, some users requested to change their addresses, including a number of high-volume participants,” said MYX.

“From the perspective of focusing on trading itself, we did not impose specific prohibitions on such requests.”