$LAB Total Liquidations: 📈💀
Shorts Are Getting Absolutely Wrecked
Look at this liquidation data for LAB and you can see exactly what happened in the last 24 hours. Shorts got smoked. Out of 27.9M total liquidations, 19.44M were shorts while only 8.46M were longs. That means over 69% of the liquidations came from people betting against LAB.
The shorter timeframes tell the same story. In the last 1 hour, 56.71K in shorts got rekt versus only 24.93K in longs. On the 4 hour, 375.98K shorts liquidated compared to 180.31K longs. Even on the 12 hour, shorts made up 13.76M of the 21.6M total. When you see this kind of imbalance, it usually means price squeezed up and forced short sellers to market buy to cover.
This is what a short squeeze looks like in real time. Too many traders piled into shorts, probably thinking LAB was overextended or due for a pullback. Then price pushed higher, hit their stops and liquidation levels, and their forced buys added more fuel to the move up. The cascade effect is real. Each liquidation becomes a market buy, which pushes price higher, which liquidates the next short.
What does this mean for you? First, don’t blindly short a coin just because it pumped. If the crowd is heavily short and funding is negative, the path of max pain is up. Second, if you’re long, this liquidation data shows momentum is with buyers for now. But be careful chasing after a move like this. When shorts are wiped out, the squeeze fuel is gone and price often needs to cool off.
Watch open interest and funding next. If shorts start building again while price holds up, we could see round two. If longs are now overleveraged, they become the next target.
Were you on the right side of this LAB squeeze or did you get caught shorting the pump?
#LABUSDT #Liquidations