Currently, there are three main types of “shanzhai” market-making:

1. The “Wild Trader” approach relies on shouting orders and creating hot topics, using volume to set the rhythm, reducing personal capital investment, and pushing prices through multiple accounts “lifting the carriage.”
The play involves pulling (or smashing) spot and futures to eat opponents’ orders, with limited capital, and targeting times of poor liquidity.
Primarily active in second-tier exchanges, focusing on ultra-short-term trades, with the main fear being rats’ warehouses running early.
2. High Control + Earning from funding rates/spot premium, the “Heavy Capital” type needs no market volume, relying solely on funding rates or spot price spreads to attract natural liquidity.
Control the chips to over 95%, with at least $10 million to start playing.
Common tactics: first control the market, then pull (or smash), to attract opponent’s orders. Use natural transactions in spot to gradually offload holdings. In the early stages, they wash the market to reduce costs.
This type is less afraid of rats’ warehouses, but rats’ warehouses will take a share of the profits.
2.5. A further “fee rate eating” play based on 2.
Start with at least 90% of chips, wash the market first under high control, then adjust the fee rate rhythm: smash when the fee rate is positive, pull when it’s negative.
However, funding rates are highly dependent on opponent’s orders; if no one takes the market, the fee rate is mostly just “rent,” and the core profitability still comes from directional spot trading and contract depth.
This type is not afraid of rats’ warehouses at all and even prefers rats’ warehouses to lift the market.
3. Violent Control
Common in new projects with high circulation of airdrops.
Direct violence—throw money into depth—no explanation needed.
Some projects prepare over $100M in market-making funds; rats’ warehouses rarely survive to the end.