According to @kwok_phil, a supply shock can cause a token's market cap to surge dramatically because market cap is calculated as circulating supply multiplied by price, and price is set by the most recent trades using the volume-weighted average price (VWAP). In a thin order book, even a small trade can significantly impact the token price, leading to drastic market cap changes. This mechanism is critical for crypto traders to monitor, as sudden liquidity shortages can result in rapid price and cap movements, presenting both risk and opportunity (source: @kwok_phil).