Yesterday, ETH's crash was a "massacre among institutions"
I was in Tanzania yesterday.
The time difference and scenery are completely different from back home.
But in the instant the market turned,
no matter where you are,
you can feel that fear and shock of the "system starting up."
When that big bullish candlestick was formed,
I was completely stunned.
Not because of the rise,
but because I saw with my own eyes a "massacre at the institutional level" happening.
What was wiped out yesterday were not retail investors, but institutions.
Including:
Quantitative models shorting ETH
The futures short positions of hedge funds
Market makers' risk hedging positions (inventory hedge)
Algorithmic strategies of cross-exchange arbitrage funds
Whale-level perpetual short positions
These are all "expert players" holding positions worth tens of millions or even hundreds of millions of dollars.
They are not incapable of trading,
they do understand technology,
they do have data,
they are not slow to react,
but last night,
even they couldn't escape.
Public data shows:
The entire ETH market experienced liquidations worth hundreds of millions of dollars.
The short chain was continuously breached.
High-frequency algorithms couldn't cancel their orders in time.
Market makers were forced to swallow huge slippage.
The more it exploded, the more it rose; the more it rose, the more it exploded.
Watching the price shoot up like a rocket,
I was in Tanzania,
with slow internet and dark skies,
the feeling of being in a foreign land and watching the market spiral out of control —
really makes you instantly realize your own insignificance.
What I truly realized yesterday is:
Even institutions can be broken overnight,
so how can ordinary people possibly overcome leverage + liquidation + liquidity mechanisms?
Retail investors always only see the few times they "made money,"
but the market always remembers:
that one extreme situation that ruined you.
Yesterday was such an "extreme situation."
True experts are not those who can accurately predict the direction,
but those who can avoid such situations.
As a community, we must stand with our fans; recent strategies have been long positions.
Fans who followed the strategy made a direct profit of 500,000 U.
