Personally, the surge in ALPACA's price after Binance announced the delisting is not merely a market rebound, but rather a result of a complex interplay of various factors, the most notable speculation being 'short squeeze' behavior.
1. 'Short Squeeze' Scenario: The 'short squeeze scenario' theory mentioned in the article suggests that before Binance announced the delisting, major institutions may have already positioned themselves by accumulating a large amount of ALPACA at low prices. After Binance officially announced the delisting news, the market generally expected a price crash, leading to a surge of shorts entering the market. Major institutions would then take the opportunity to raise prices, resulting in short positions being liquidated and achieving huge profits. Binance shortened the funding rate charging period to 1 hour, further intensifying the pressure on shorts and accelerating the short squeeze process.
2. Market Expectations and Behavior: Delisting news is usually seen as bearish, leading to panic selling among investors, but this time there was an abnormal phenomenon. This may be because some investors anticipated the manipulative actions of major institutions, or believed that ALPACA still had trading value on other exchanges, thus choosing to buy on dips or wait and see.
3. Liquidity Issues: Binance is the main trading platform, and after delisting, the liquidity of ALPACA will be severely affected. Some investors may actively sell off before the deadline to avoid losses, leading to increased short-term price volatility. However, this selling pressure may be offset or reversed by the absorption actions of major institutions.
4. Information Asymmetry: Some speculate that certain investors may have received advance information regarding the delisting news and the plans of major institutions, allowing them to buy at lower prices and make a profit. This kind of information asymmetry is a common phenomenon in financial markets.
In summary, the surge in ALPACA's price is not merely a market reaction, but rather a result of major institutions meticulously planning using market expectations, trading mechanisms, and information asymmetry among various factors.
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