"Uniswap Faces SEC Lawsuit Threat, Whales Cash Out, DeFi Sector at Risk"

Uniswap's UNI token price crashed 17% following SEC's actions and warnings, leading to significant sell-offs by large holders, causing a cascade effect and triggering panic selling among investors. The selling pressure from whales could erode investor confidence and lead to a prolonged bearish trend, potentially deterring new investors and prompting existing holders to liquidate their positions. Traders also suffered substantial financial losses, with $4.4 million worth of positions liquidated in the last 24 hours, primarily long positions. This event can contribute to increased price volatility and affect market liquidity, with UNI trading at $9.32 at press time.