Woofun AI reports that Yooldo Games publicly attributed the 90% price collapse of the ESPORTS token on May 25 to an external over-the-counter and market-making partner. In a statement released on X, the operator denied direct involvement in the sell-off, asserting the crash resulted from a partner violating their agreement rather than internal strategy. The company confirmed that one firm engaged in activities contrary to the signed contract, believing a significant portion of the sell-off volume originated from this entity.

Yooldo Games noted that tracing the full flow of funds remains difficult as assets moved through multiple wallets, counterparties, and exchanges. The incident initially sparked widespread accusations of a rug pull against the company, fueled by delayed investigation results. Structural concerns intensified after reports emerged that only a handful of employees were working at the office of Catze Labs, the project's developer. These details raised further questions regarding the project's operational transparency and team depth.

For investors, the crash represents a near-total loss of value with uncertain recovery prospects.

Woofun AI data shows the case highlights risks associated with tokens relying on external market-making partners when oversight and transparency are limited. The incident underscores the critical need for clear contractual safeguards and rapid incident response mechanisms within the crypto space.

While Yooldo Games has shifted blame to its OTC partner, the lack of a full public fund trace and earlier silence on the investigation leave many questions unanswered. The episode serves as a cautionary tale about vulnerabilities inherent in token projects with opaque operational structures and external dependencies.