Brothers, have you heard about the 173 million liquidation across the internet? Many people's first reaction after being liquidated is "I have such bad luck" or "the market is too bizarre," but as a seasoned analyst, I need to pour a bucket of cold water on that: it's not that you're unlucky, but that you've fallen into the harvesting tactics carefully designed by the main players! Especially the liquidation of 46.08 million dollars in Bitcoin, every transaction is filled with traces of "human manipulation." Today, let's uncover the main players' cover and see how they gradually forced retail investors into a path of liquidation.
Let's get straight to the point: The core logic of the main players harvesting retail investors is to "exploit information asymmetry and emotional differences to create extreme volatility that triggers liquidation." In this liquidation event, the main players used at least three classic tactics, each targeting the weaknesses of retail investors.
The first tactic: 'News warming + false breakout' to lure in buyers. In the 24 hours prior to the liquidation, the market saw continuous messages like 'Bitcoin is about to break through its historical high' and 'a certain sovereign fund increases its Bitcoin holdings.' These messages seemed favorable but were actually 'smoke bombs' from the main players. I checked the relevant data, and there was no public holding report supporting the so-called 'sovereign fund increase'; it was typical false news. However, retail investors saw these messages and their emotions were instantly ignited, rushing to go long. Even worse, the main players created a 'false breakout' near Bitcoin's previous high—where the market briefly exceeded the previous high, leading retail investors to believe 'breakthrough successful, a big rise is coming,' prompting them to leverage into the market. As a result, the main players countered with a wave of selling, directly trapping retail investors at high levels.
The second tactic: 'Precise pinning during periods of liquidity exhaustion.' I mentioned earlier that the market liquidity is lowest between 2-6 AM. During this time, the main players only need to use a small amount of capital to cause significant market fluctuations. The key moment of the recent Bitcoin liquidation was around 4 AM, with a sharp drop from around $42,000 directly to below $40,000, a decline of over 4.7%. This sharp drop seemed fierce, but the trading volume was actually not high, indicating that the main players intentionally created panic by selling. Many retail investors with high leverage were directly liquidated during this sharp drop, while the main players quietly bought in at low levels, completing the 'selling high and buying low' harvesting loop.
The third tactic: 'Double kill' for both long and short. Some may ask: 'How do the main players know whether I am going long or short?' In fact, the main players do not need to know the situation of individual accounts; they judge market sentiment by 'monitoring the leverage position data across the entire network.' Before this liquidation, the proportion of long leverage positions for Bitcoin across the network reached 68%, clearly higher than the 32% for shorts. The main players saw that the long position ratio was too high, so they first sold off to harvest the longs; once the longs were liquidated, market sentiment fell into panic, and retail investors rushed to go short, allowing the main players to take advantage and drive the price up, harvesting another wave of shorts. This kind of 'double kill' operation allows the main players to maximize profits, while retail investors become the 'suckers' being hit from both sides.
Here’s a core piece of information for everyone: how to judge whether the main players are harvesting? Look at two indicators: one is the 'leverage position ratio.' If the leverage position in one direction exceeds 60%, be wary of the main players reversing their harvest; the second is the 'matching degree of trading volume and volatility.' If the market experiences significant volatility but trading volume is very low, it is likely that the main players are intentionally pinning, not reflecting the real market. This time, the Bitcoin liquidation met both conditions—long leverage accounted for 68%, and the trading volume during the sharp drop was only 1/3 of normal, clearly indicating main player harvesting behavior.
The core reason why many retail investors are often taken advantage of is that they 'only watch the market trends without looking at the order book,' being led by the tactics of the main players. I have always emphasized that 'trading should rely on logic, not emotions.' Logic means learning to analyze the movements of the main players and judging the true trends of the market, rather than blindly following the crowd.
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