Just saw a revelation about two people being taken down by the exchange regarding something you are afraid of. This is what first-tier and second-tier exchanges are currently doing.
These exchanges are using AI tools.
1. If you open a position with a very large amount on low liquidity contracts, they will directly manipulate the price to trigger your stop-loss or liquidate your position.
2. If you are trading high-leverage contracts like BTC, ETH, or SOL with a huge amount but very little margin, and your stop-loss or liquidation price is very close to the current price,
Their AI system detects when the platform's price can be manipulated for profit.
The exchange will temporarily manipulate the prices of BTC, ETH, and SOL, causing a sudden drop to trigger your position if you are long, or a spike to trigger your position if you are short.
Once they take you out, they will immediately pull back.
These two exchanges' systems are operating with AI automation pipelines, both first-tier and second-tier exchanges are doing this.
Stay away from low liquidity altcoin contracts and mainstream high-leverage contracts. 🙏