PUMP Token Plunges After Expanded Pump.fun Class-Action; Legal Risk Deepens Sell-Off

Published: 2025-12-21 21:39:01 |

A U.S. federal court approved an expanded class-action against Pump.fun, its executives and affiliates (including the Solana Foundation and Jito Labs) after a whistleblower released roughly 5,000 internal chat messages alleging insider trading and market manipulation. The filings allege 98.6% of memecoins launched on Pump.fun collapsed to zero and claim retail losses of $4–$5.5 billion. The news intensified selling pressure on the native PUMP token, which dropped about 39.3% from $0.0032 to $0.00196 since Dec. 9, 2025. On-chain and technical data signal continued downside. PUMP breached long-term support at $0.0025. Chaikin Money Flow (CMF) is below -0.05 and Money Flow Index (MFI) sits near 40, indicating seller dominance. CoinGlass shows a ~4% rise in futures open interest despite price weakness, concentrating leverage near $0.00193 and $0.00207—levels that could trigger cascade liquidations and short-term volatility. Fibonacci retracements point to potential bounces toward $0.0025–$0.0026, but short-term supply/resistance zones at $0.00207 and $0.0023–$0.0025 remain pivotal for any recovery. Trader guidance: maintain a bearish bias on PUMP. Consider short entries on retests of $0.00207–$0.0021 with tight stops (invalidate above $0.0021), or wait for a technical bounce toward $0.0026 to trim positions. Monitor liquidation clusters ($0.00193–$0.00207), open interest, and legal developments—ongoing litigation raises tail risk and may deter fresh capital until clarity emerges. Primary keywords: Pump.fun, PUMP token, class-action lawsuit, memecoin, market manipulation. Secondary keywords: Solana, Jito Labs, Fibonacci, open interest, liquidation map. Disclaimer: informational only; not financial advice.

Bearish

The expanded class-action and whistleblower revelations materially increase legal and reputational risk for Pump.fun and the PUMP token. The token has already broken a long-term support at $0.0025 and on-chain metrics show seller dominance (CMF < -0.05, MFI ~40). Rising futures open interest amid falling price concentrates leveraged positions near $0.00193–$0.00207, creating a high probability of liquidation cascades that can accelerate downward moves. Short-term technical resistance at $0.00207 and $0.0023–$0.0025 offers tactical entry points for shorts; possible rebounds to $0.0025–$0.0026 are likely to be weak and short-lived without legal clarity. In the longer term, ongoing litigation and alleged market manipulation reduce investor confidence and can deter new capital, keeping a structural downside bias until cases resolve or positive legal developments emerge. Therefore the expected price impact on PUMP is bearish both short-term (liquidation-driven volatility) and medium-term (reduced inflows and elevated legal tail risk).