Shorting in a bull market is like holding a torch against the wind—illuminating others' wealth while burning your own capital.

Today, the crypto world exploded: a top hedge fund called Abraxas Capital shorted Bitcoin, Ethereum, and a bunch of altcoins, resulting in a market surge that caused it to incur a floating loss of $245 million, with the ETH short alone losing $188 million, accounting for 77% of the total loss!

Why is this important?

Market sentiment may be triggered

If Abraxas Capital is forced to close its positions, it could lead to short-term extreme volatility, especially for ETH and SOL, as they are the most shorted.

Once it starts to close its positions, the market may experience a “short squeeze.”

Shorting in a bull market = high risk

In a bull market, market sentiment is euphoric, with continuous positive news, and shorting is like “a mantis trying to stop a car,” easily getting crushed.

From a technical perspective: After ETH breaks through $4500, the next target may be $5800; after SOL stabilizes at $180, it may challenge $200. If shorts continue to hold on, they will only be “squeezed” by the market.

Long's View:

Institutions can make mistakes too: Abraxas Capital's huge losses indicate that traditional financial “hedging strategies” may not be effective in the crypto space, and market sentiment is more important than fundamentals.

Opportunities for retail investors: If the market really squeezes shorts, ETH and SOL may experience a short-term surge, but one must also be wary of severe pullbacks.

Short-term: If ETH breaks through $5000, or BTC stabilizes at $170,000, Abraxas Capital may be forced to close its positions, leading to an accelerated market rise.

Medium-term: The bull market trend remains unchanged, but after shorts are liquidated, the market may experience a brief adjustment.

Strategy: Don't blindly chase shorts; shorting in a bull market = seeking death.

Keep an eye on ETH and SOL; if Abraxas Capital is liquidated, they may be the biggest beneficiaries. Set stop losses; with increased market volatility, don't get blown out by sudden crashes/surges.

When institutions start to bleed, it is often the craziest time in the market—are you ready to scoop up bargains or become someone else's prey? #巨鲸

Don't wait until the contracts are liquidated to remember me! Follow Long, and next time I'll help you escape the top 3 seconds early!