💥 The Truth About Liquidations: They Don’t Boost Price — They Boost Exchanges
People keep saying “when longs get liquidated, it’s good for the market.”
But that’s not how centralized exchanges work.
A long liquidation isn’t bullish — it’s forced selling, and forced selling pushes price down, not up.
And here’s the real twist:
The value that should’ve strengthened the market doesn’t go back into the chart… it goes straight to the exchange.
Exchanges profit from:
Liquidation fees
Funding cycles
Spreads during volatility
Their insurance fund swelling from trader losses
So instead of HODLers getting a cleaner, stronger price base, exchanges walk away with the gains while the market absorbs the damage.
Liquidations don’t “help the price.”
They help the platform.
The reset isn’t for the market — it’s for your account balance.
