In the high-leverage casino, the market maker is harvesting greedy souls with a meat grinder.
On the price chart of BEAT, four precise short traps are like four sharp sickles, repeatedly striking at traders trying to short. This is not the natural fluctuation of the market, but a meticulously planned 'hunting feast.'
The project party has controlled the market with only a 14% extremely low circulating supply, yet opened perpetual contracts with up to 50 times leverage on exchanges like Binance, creating perfect conditions for a short squeeze where a small amount of capital can drive prices skyrocketing, thus triggering short positions.
01 The birth of a monster coin, the crazy trend of BEAT
BEAT has shown astonishing market performance in the past period. From a low of $0.065, it soared to a high of $4.37, with a high-low range increase of up to 67 times.
Behind this explosive increase is a typical controlled operation. The circulating supply of BEAT is extremely limited, with about 86% of the tokens locked or not unlocked. This makes the actual circulating chips in the market very scarce, allowing the market maker to significantly drive up prices with relatively small amounts of capital.
More notably is the abnormal activity in its contract trading volume. In BEAT's trading, there is an extremely abnormal phenomenon: the contract trading volume is dozens of times that of the spot trading volume. This phenomenon usually indicates that market sentiment is extremely distorted, with low transaction volume in the spot market making prices easier to manipulate, thus affecting the mark price in the contract market and triggering a chain liquidation.
02 Analysis of the four short trap trading techniques
How does the market maker set traps step by step, forcing shorts into a desperate situation?
Step 1: Raise the price to establish short positions. The market maker first pushes the price up to attract the first batch of traders daring to short. In the case of BEAT, the first short trap occurred when the price broke above $1, when the RSI indicator showed overbought conditions, and technical traders rushed in to short.
Step 2: Control the spot price to influence the contract's mark price. The market maker uses the highly concentrated spot chips in hand to firmly control the spot price. Since the mark price of the contract is calculated based on the spot price, controlling the spot price means being able to decide when contract traders will be liquidated.
Step 3: Create false breakouts to lure shorts. At key resistance levels, the market maker will deliberately create false breakouts, causing the price to briefly drop below important support levels, enticing more shorts to enter. In the four short traps of BEAT, each time there were obvious 'breakout' signals, but the price was quickly pulled back.
Step 4: Violently raise the price to trigger short covering. Once enough short positions are accumulated, the market maker begins to violently raise prices. Shorts are forced to cover, and these covering orders turn into passive buying, further pushing prices up, forming a vicious cycle of 'short squeeze.'
The cruelty of this technique lies in the fact that even if traders judge the long-term direction correctly, they may still be washed out due to short-term fluctuations.
03 Identify market maker selling signals
No coin will only rise without falling; the ultimate goal of the market maker is to sell at a profit. Here are several key selling signals:
Sideways selling is one of the common techniques used by market makers. They create high-level oscillation ranges, causing stock prices to fluctuate repeatedly within a certain range, seemingly gaining momentum, but in fact secretly distributing chips. The characteristic is 'bears last long while bulls are short,' meaning the speed of price decline is slow and the time is long, while the rise is rapid and fleeting.
Abnormal trading volume behavior is another important signal. If the price hits new highs but trading volume gradually shrinks, or if there are signs of heavy selling pressure, it may indicate that the market maker is distributing chips to retail investors.
Another key time point that BEAT will face in the future is large-scale token unlocks. According to its economic model, a large number of tokens will be unlocked every month starting January 2026. Once these low-cost tokens enter the market, they may become a significant potential selling pressure.
04 Retail Survival Strategy
Facing such a perilous market environment, retail investors need a complete survival strategy.
Strictly setting stop losses is the first rule of survival. When shorting high control coins, a clear stop loss point must be set and strictly enforced. In the case of BEAT, many traders who were liquidated were because they held onto a false sense of security and kept delaying their stop-loss points.
Beware of the temptation of high leverage. High leverage is a double-edged sword; while it can amplify returns, it also greatly increases the risk of liquidation. In low market cap, high control coins, especially when the contract OI (open interest) is abnormally high, high leverage is akin to a suicidal act.
The 'First Shadow Strategy' is a relatively robust shorting strategy. This strategy advises not to guess the top during continuous rises but to wait for the first clear signal of weakness before acting. For coins like BEAT, one can wait for the price to effectively drop below the previous day's closing price before considering shorting and set stop-loss above the previous high.
The most critical thing is: avoid blindly shorting high-control targets. In many cases, not participating may be the wisest choice. As emphasized in the search report: 'Do not short, do not short, do not short!'
Next time, when you see a coin skyrocketing and the contract funding rate being extremely negative, you might want to ask yourself: Is this a real market opportunity, or another trap set by the market maker? In this game, sometimes the biggest victory lies in refusing to participate in a losing bet.
The market maker of BEAT is not planning to stop; they want not only the short positions but also the greed of more buyers. The sideways movement is merely a halftime break; larger fluctuations may still be ahead.
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