SHORT-SQUEEZE PARADOX: WHY DOES CRYPTO START TO SKYROCKET ON TERRIBLE NEWS? 📰🚀
Horrible economic news drops, a project gets hacked for millions, or a regulator sues an exchange. The whole Twitter is screaming about a crash. Retail traders are opening shorts with all their leverage. At that exact moment, the price shoots up with a candlestick to +20%.
• Why this happens: In the market, there’s no concept of “bad” or “good.” The market operates on the idea of “order imbalance.”
• Mechanics: When everyone is shorting at the same time, the market gets overloaded with stop-losses from short sellers (which are buy orders). It only takes a tiny volume from a market maker to push the price up and start a chain reaction of forced liquidations.
The market rises not because everything is fine, but because short sellers are paying with their deposits for this rise.
👇 Open the SOL widget. Have you ever caught a liquidation on “100% short” news?
#ShortSqueeze
#Solana $SOL #CryptoFREEMEN
Horrible economic news drops, a project gets hacked for millions, or a regulator sues an exchange. The whole Twitter is screaming about a crash. Retail traders are opening shorts with all their leverage. At that exact moment, the price shoots up with a candlestick to +20%.
• Why this happens: In the market, there’s no concept of “bad” or “good.” The market operates on the idea of “order imbalance.”
• Mechanics: When everyone is shorting at the same time, the market gets overloaded with stop-losses from short sellers (which are buy orders). It only takes a tiny volume from a market maker to push the price up and start a chain reaction of forced liquidations.
The market rises not because everything is fine, but because short sellers are paying with their deposits for this rise.
👇 Open the SOL widget. Have you ever caught a liquidation on “100% short” news?
#ShortSqueeze
#Solana $SOL #CryptoFREEMEN