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CRYPTO MECHANIC
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$MYX did over 10x in just 3 days and it’s only listed on futures.
Why does this happen? Why do some coins move so sharply?
Such moves are mostly triggered by short liquidations. Since this coin is listed only on futures, it’s much easier to manipulate. On futures, people usually trade with high leverage.
When a token starts going up, many traders begin to short it, thinking
“It has gone up too much, now it will come down.”
But by shorting, these traders actually add more fuel to the fire. Market makers keep pushing the price up.
When too many shorts are open, it’s easier for market makers to push the price up because short liquidations have to be filled on the sell side order book and order books are usually thin, which creates buy pressure, causing the token to move sharply upward.
Why does this happen? Why do some coins move so sharply?
Such moves are mostly triggered by short liquidations. Since this coin is listed only on futures, it’s much easier to manipulate. On futures, people usually trade with high leverage.
When a token starts going up, many traders begin to short it, thinking
“It has gone up too much, now it will come down.”
But by shorting, these traders actually add more fuel to the fire. Market makers keep pushing the price up.
When too many shorts are open, it’s easier for market makers to push the price up because short liquidations have to be filled on the sell side order book and order books are usually thin, which creates buy pressure, causing the token to move sharply upward.
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