đ„ The Truth About Liquidations: They Donât Boost Price â They Boost Exchanges
People keep saying âwhen longs get liquidated, itâs good for the market.â
But thatâs not how centralized exchanges work.
A long liquidation isnât bullish â itâs forced selling, and forced selling pushes price down, not up.
And hereâs the real twist:
The value that shouldâve strengthened the market doesnât go back into the chart⊠it goes straight to the exchange.
Exchanges profit from:
Liquidation fees
Funding cycles
Spreads during volatility
Their insurance fund swelling from trader losses
So instead of HODLers getting a cleaner, stronger price base, exchanges walk away with the gains while the market absorbs the damage.
Liquidations donât âhelp the price.â
They help the platform.
The reset isnât for the market â itâs for your account balance.