Toxic flow doesn’t look toxic at first.
On chains like Fogo, high volume can signal activity.
But volume driven by information asymmetry doesn’t strengthen markets => it drains them.
When liquidity consistently trades against better-informed flow, spreads widen.
Depth becomes defensive.
I’ve watched markets that looked busy but felt structurally weak.
Healthy liquidity isn’t about how much trades.
It’s about who survives when volatility hits.