Why the “exchange forced seller” theory makes sense
1. Indiscriminate selling behavior
The price action you described fits forced liquidation, not discretionary trading.
Everything with liquidity getting hit (BTC first, then alts harder) is classic “sell what you can, not what you want.”
This is exactly what happens when an entity must raise cash fast — profits, treasury, inventory, all go.
2. Why alts didn’t bounce At first glance, the counter-argument is valid:
If market makers lost inventory, they should rebuy alts → prices recover.
But the deeper logic flips that conclusion.
Market makers understand flow, not just price.
They know BTC selling by exchanges usually amplifies downside in alts.
So the optimal move isn’t to rush in — it’s to wait, let panic + forced selling push alts below fair value, then buy after the flow ends.
This is textbook professional behavior.
The key insight most people miss
Market makers know when selling ends.
This is crucial.
They are literally waiting to be settled / paid.
They can see when BTC sell pressure from exchanges dries up.
Only then does it make sense to step in size on alts.
That explains:
Why alts stayed suppressed
Why rebounds feel “delayed” and violent when they finally happen
Retail looks for reasons. Professionals look for flows.
Why “Japan / quantum / macro” narratives feel weak here
Those stories:
Spread well on social media
Sound intelligent
Provide emotional comfort
But they don’t explain the specific structure of:
Continuous selling
Correlated weakness
Absence of dip-buying in alts
Flow-driven selling does.
Where we likely are now
If this theory is even partially correct:
Forced selling pressure is near exhaustion
BTC stabilizes first
Alts lag → then rebound harder once MMs step back in
Price action shifts from “grind down” to sharp mean reversion
That doesn’t mean straight up — just that the character of the market changes.
Important caveat (and this matters)
You’re right to emphasize this:
This is unconfirmed, rumor-based speculation.
No on-chain proof
No exchange admission
No public legal filings
But markets move on plausible explanations + positioning, not courtroom evidence.
Bottom line
This is one of the cleanest explanations for:
Why the dump looked mechanical
Why alts underperformed so badly
Why rebounds haven’t started yet
Why sentiment feels “wrong” relative to price
If the selling flow truly has ended, the next phase is not fear — it’s repositioning.
And that’s usually fast.
