The #LA liquidation incident that stirred up a lot of noise last night, is it really the exchange's fault?

For those who keep a close eye on the crypto world, you must have heard about the liquidation incident of Gate's $LA contract last night, with some people in the group even losing everything.

Let's recap the events: yesterday afternoon, Binance's alpha points reward announcement came out, featuring a token called $LA. At the same time, some people in the group discovered that this token would actually be listed on several major exchanges' contracts! What are we waiting for? Let's go short and hedge, it's a standard operation.

To be honest, I've played this kind of hedging game as well, after all, it can make money! However, the manipulators of $LA pulled a fast one because everyone estimated the opening price could be between 0.1 and 0.2, so many chose to open a short position of 0.5 or even 1. After receiving the alpha points, many players would immediately sell, and the massive selling pressure would inevitably allow shorts to make a good profit!

Here comes the key point: the manipulators of $LA suddenly pumped the price to 27, then quickly slammed it back down to around 0.5. So, is there any short position that can't be liquidated? And liquidation is inherently part of the contract mechanism.

This incident directly led to Gate being thrust into the spotlight. In fact, the exchange itself was quite unlucky; it would have been better not to list this token contract.

Many people say this is a conspiracy orchestrated by the exchange, but looking at today's token price, it has bounced back to 1.5, indicating that the manipulators have a tight grip on the market and are skilled at understanding market sentiment!

Lastly, let me reiterate: the nature of contract trading is like dancing on a knife's edge; high returns also mean high risks, the first law of finance!

Also, if you open leverage over 3 times, if things don't improve, it's highly likely to go to zero.

Why am I so certain? Because I've really experienced liquidation at the peak of my profits, that kind of despair, I can relate! #我的COS交易 #Circle扩大IPO规模 #币安钱包TGE #美国加征关税 #币安Alpha上新