How do market makers use short selling liquidation to create buying pressure?

In the small-cap cryptocurrency market, market makers often use short selling liquidation to create buying pressure, driving the price up:

Controlling spot: Market makers first absorb or lock in low positions, controlling most of the circulating supply and reducing spot selling pressure.

Opening long contracts: In the derivatives market, market makers quietly build long positions (bullish), while observing the accumulation of short positions (with a high percentage of shorts in open interest).

Pushing up spot prices: Using a small amount of capital to raise spot prices (for example, from $0.01 to $0.02), triggering short selling liquidation.

Liquidation triggers buying: Short selling liquidation causes the exchange to automatically buy, amplifying market buying and pushing prices further up (for example, to $0.05).

Snowball effect: Price increases trigger more short selling liquidations, buying continues to increase, market makers profit from their long positions, and they can use the profits to continue buying spot, pushing market capitalization #知识分享 .