⚠️ALL SHORT POSITIONS CLOSED‼️
Why were the short positions closed by ADL? ADL stands for Auto-Deleveraging, a mechanism by Binance Futures to maintain market stability during massive liquidations and imbalances in the "insurance fund". Here is a clear explanation: What is ADL and how does it work? In perpetual contracts like ALPINEUSDT Perp, traders use leverage (e.g., 10x-125x). If the price moves against (e.g., goes up for shorts), positions are liquidated if the margin falls below maintenance.
If liquidations exceed the insurance fund (which covers losses of opposing positions), Binance activates ADL to force the closure of profitable positions (top traders by positive PnL and leverage) and transfer profits to the fund. This prevents bankruptcies on the exchange.
Priority: Based on Risk Limit (leverage levels) and PnL % (relative gains). Traders with more leveraged positions and higher profits are "prioritized" for ADL (it's like a forced tax on winners).
Why were shorts specifically closed by ADL? Trade context: In a crash like this (-77%), short positions (bets against) became highly profitable because the price dropped drastically. If you opened a short near the peak (~$17+), you made a lot, but the mechanism does not distinguish "why" — it just closes to balance.
Liquidation imbalance: The market saw $1.7B+ in liquidations, mostly longs (bulls swept by the drop). This depletes the insurance fund, activating ADL on the opposite side (profitable shorts) to refill it. Your shorts were closed because: You were one of the top performers (high PnL % due to the drop).
You had high leverage (common in perps).
The fund needed immediate liquidity to cover liquidated longs.$ALPINE
Why were the short positions closed by ADL? ADL stands for Auto-Deleveraging, a mechanism by Binance Futures to maintain market stability during massive liquidations and imbalances in the "insurance fund". Here is a clear explanation: What is ADL and how does it work? In perpetual contracts like ALPINEUSDT Perp, traders use leverage (e.g., 10x-125x). If the price moves against (e.g., goes up for shorts), positions are liquidated if the margin falls below maintenance.
If liquidations exceed the insurance fund (which covers losses of opposing positions), Binance activates ADL to force the closure of profitable positions (top traders by positive PnL and leverage) and transfer profits to the fund. This prevents bankruptcies on the exchange.
Priority: Based on Risk Limit (leverage levels) and PnL % (relative gains). Traders with more leveraged positions and higher profits are "prioritized" for ADL (it's like a forced tax on winners).
Why were shorts specifically closed by ADL? Trade context: In a crash like this (-77%), short positions (bets against) became highly profitable because the price dropped drastically. If you opened a short near the peak (~$17+), you made a lot, but the mechanism does not distinguish "why" — it just closes to balance.
Liquidation imbalance: The market saw $1.7B+ in liquidations, mostly longs (bulls swept by the drop). This depletes the insurance fund, activating ADL on the opposite side (profitable shorts) to refill it. Your shorts were closed because: You were one of the top performers (high PnL % due to the drop).
You had high leverage (common in perps).
The fund needed immediate liquidity to cover liquidated longs.$ALPINE