🆕🇺🇸 The reason for this dump, in my view, was the Fed rate cut.

The market had already priced in the rate cut, which had been fueling the upside. But once it was announced, there was nothing new to drive the rally, and a lot of liquidity was left to be grabbed on the downside. That’s why the market flushed, causing nearly $1.8 billion in liquidations, which was massive.

🔼After the rate cut, everyone turned overly bullish and when sentiment becomes one-sided, liquidity dries up. For the market to function, liquidity has to come from both sides. This time, both high-leverage and low-leverage positions were wiped out in the flush.