BTC violent liquidation harvesting retail investors. Is it manipulation by the big players or market rules?

On December 17th, Bitcoin experienced a rollercoaster market with a surge from $87,500 to $90,365 in 30 minutes, followed by a bloodbath to $86,300 within 90 minutes, resulting in a total liquidation of $190 million across the network. Both long and short positions suffered. This operation has left countless contract players bankrupt. More bizarrely, social media has gone wild with rumors that Wintermute, Binance, BlackRock, and Coinbase are colluding to manipulate prices, precisely enticing retail investors to buy high and sell low.

To be honest, such accusations arise every time there is a drastic drop, but this time the rhythm is indeed outrageous. A fluctuation of up to $3,000 in a short period during a time of liquidity exhaustion is quite abnormal. Market analyst Hunter Rogers bluntly stated that the market is already exhausted; even a slight selling pressure can cause a crash. However, the core issue is not whether there is manipulation by big players, but why retail investors always end up being the ones harvested.

High-leverage contracts are like time bombs. BTC repeatedly oscillates in the $87K-$92K range, with bulls leveraging to chase highs and bears opening high-multiplication shorts. Both sides are betting on direction, but in the end, both get buried. The so-called institutional manipulation is merely a facade; the fundamental problem is the poor trading mentality and risk control awareness of retail investors, who always desire to get rich overnight yet are unwilling to manage their positions.

Ironically, after this wave of sharp decline, the market did not experience a panic crash. BTC stabilized around $86K, indicating that the main capital has not truly exited the market. This feels more like a meticulously designed washout, clearing away high-leverage floating positions to prepare for a fresh start. Rather than complaining about big players harvesting retail investors, retail investors should reflect on why they always buy at the highest points and sell at the lowest points. The crypto world is never short of opportunities; what is lacking is the ability to survive until the bull market.