This wave of crash, the Chinese people just love to pit their own!

Binance's operation this time is too ruthless! On March 31st, they suddenly cut the maximum amount of ACT that each account could hold from 9 million to 4.5 million, a direct halving. As a result, at 2:30 AM the next day, they issued another announcement saying they would further cut it to 3.5 million, and that it would be enforced by 5 AM. This is equivalent to cutting the position limit of large holders by 60% in just two days, not even allowing people to catch their breath.

This has pushed the large holders into a corner—those who hold a large number of contracts simply cannot respond in time. Originally, market makers would hold perpetual contracts while stocking up on spot assets for hedging, but now with the position limit suddenly shrinking, they can only grit their teeth and liquidate their contracts, along with dumping their spot assets. At this moment, a dramatic scene unfolded: when large holders started to sell off, other bots saw something was wrong and immediately followed suit, causing prices to plummet even more, leading to a chain of liquidations and a waterfall effect.

Someone might ask the Fire Wolf: Can't these big players sell slowly? Do they have to bury themselves too?

Actually, there is a trick here. Market maker bots are precisely coordinated, and if they sell slowly, they might be caught by other bots taking advantage of the price difference. Therefore, large funds either remain inactive, and once they decide to retreat, they execute a nuclear button-style liquidation, directly breaking through the market.

Now let’s talk about the tricks of perpetual contracts. Exchanges often restrict large positions to reduce the risk of liquidation, which was originally intended to control risk but ended up becoming a trigger for a crash. Those traders are not naive; the funds they hold have a time cost, and the longer they delay, the higher the interest. So you often see them executing lightning-fast trades: instantly consuming spot to blow up short positions, and then using contract leverage to drive the market. After all, contracts can be leveraged, and as long as the price fluctuates enough, it can force opposing bots to keep buying spot assets to hedge, forming a death spiral.

In the end, this crash is a triple hit from the sudden change in exchange policy, large holders' urgent self-rescue, and bots following the trend to sell off. In the crypto arena, sometimes a single rule change can trigger a bloodbath; those who trade contracts really need to fasten their seat belts!

Recently, the Fire Wolf has mainly been short, $GUN shorting led to a rapid decline, whether it’s luck or not, as long as the direction is correct, it’s definitely stable. Many people chase after a rise, only to end up trapped, cutting losses as well. 17004100467