$alpaca Alpaca has finally ended its sinful life, let's review the market.
There will definitely be a second and third Alpaca in the future.
The Alpaca itself is essentially a shell project worth millions of dollars, with no trading volume, no fundamentals, and no hotspots. It can be said to be barely surviving until the name Alpaca appeared in the delisting notice, giving the manipulators one last opportunity.
Stage 1: Due to the delisting notice, a large amount of capital flooded in to short, as there were enough short sellers to serve as counterparties, allowing the manipulators to open a large number of long contract positions at low prices.
Stage 2: Due to the contract open interest being much higher than the market value of the spot, combined with the strong correlation between contracts and spots, the manipulators can raise the spot price at a very low cost, pushing up the contract prices, achieving the effect of a small cart pulling a large cart.
Stage 3: As the spot price rises, a price discrepancy appears between contracts and spots. Utilizing the exchange's funding rate mechanism, short sellers are gradually disarmed, liquidated, and forced to close their positions, further driving up the price through the short squeeze effect.
Stage 4: Exploiting human weaknesses, continuously crashing the market to lure in shorts, allowing short sellers to enter, and then triggering a short squeeze.
Stage 5: On the day before delisting, the manipulators crash the market with massive spot selling, causing prices to plummet 80%, creating the illusion that the manipulators are about to flee. This results in many long positions being liquidated, while simultaneously reigniting hope for short sellers to enter again, followed by establishing a large number of long positions at the bottom.
Stage 6: Utilizing the automatic liquidation mechanism at delisting, the long positions of the market manipulators can be automatically liquidated at delivery without considering the liquidity of closing longs, equivalent to unlimited liquidity for closing positions, thus the manipulators initiated a final surge, causing the price to rise continuously and break historical highs, leaving the short sellers in disarray, including those who had made profits the previous day but did not exit.
Many people will never understand why a coin scheduled for delisting can surge dozens of times in a short period, while still trying to short it before delisting to bring it to zero, leading to continuous attempts to short at the peak, resulting in continuous liquidations, remaining confused until the delisting is over.
In summary, this time the manipulators perfectly harvested by exploiting human weaknesses and the average person's lack of understanding of trading mechanisms. Under the scythe, lives are devastated! What we ordinary retail investors can do is to dodge when we don't understand what is happening as the scythe swings down.
I hope everyone can review and learn properly, while also understanding that with such strong market control, any technical indicators are powerless in the face of absolute financial strength. Do not let indicators trap you in a quagmire.
