Liquidation Summary
Asset: Ampleforth Governance Token ($FORTH)
Position Type: Short (trader expected price to fall)
Liquidation Amount: $5,349
Liquidation Price: $3.20952
What Happened
The trader opened a short position, borrowing and selling $FORTH with the intention of buying it back cheaper.
However, the market moved against them — $FORTH's price rose to $3.20952, triggering their liquidation threshold.
At this price, the exchange automatically bought back the borrowedat market value to prevent further losses — the trader was liquidated at a loss.
Market Implications
Short liquidations = Buying pressure
Forced liquidations buy back the asset, adding bullish momentum — especially when several shorts are liquidated together.
The $5.3K liquidation size, while modest, indicates leverage was involved and that this price level became a pain point for bearish traders.
If this liquidation wasn’t isolated and occurred alongside others near $3.20, it may suggest a short squeeze setup — especially if price surged quickly through resistance.
Technical Takeaways
The liquidation price of $3.20952 now becomes a notable support-reference:
Shorts failed here, so future dips to this level could find buyer interest.
Price holding above it increases chances of a bullish continuation, especially if backed by rising open interest.
If $FORTH continues upward, it could trigger more short liquidations, compounding the rally through forced buying.
Strategic Insight
If you're tracking $FORTH: watch volume and funding rates post-liquidation — spikes in both can confirm whether it’s a squeeze or just a blip.
If you’re trading it: leverage positioning near this liquidation zone gives insight into whether bears are trapped or reloading.
Would you like to see real-time liquidation clusters or depth-of-market pressure around $FORTH's current range?
