The location of the dense liquidation zones does indeed reference historical data, allowing for inference, but the relative strength of the liquidation zones is entirely accurate, derived from the increase in open interest;
In other words, the dense liquidation zones displayed on the liquidation map may have a precision error in their actual liquidation positions, while their color brightness (liquidation intensity) shows no error, unless encountering data-manipulating exchanges.
This does not affect my subsequent liquidity analysis for liquidation; the main difference is that one cannot determine precise liquidation target points based on the highest liquidation intensity;
Instead, one must consider a certain error margin, and thus moving forward, precise liquidation target points will not be provided, but rather a vaguely correct target range will be given.
However, the judgment of the relative strength of the liquidation zones can still follow the previous analytical model. If there is no short liquidity above the price, but a large amount of long liquidity is gathered at a nearby lower position, then the probability of downward liquidation will still be judged to be greater than that of upward liquidation.
Of course, this is merely one algorithm I can think of; perhaps data websites like CoinGlass and CoinArk have better, more precise algorithms!
In fact, if one thinks carefully, exchanges are absolutely not going to publicly disclose such precise liquidation volumes, remaining open interest, and user leverage data. This not only poses a risk of malicious liquidation for users but also violates the user data privacy agreements of the exchanges;
Therefore, when we analyze futures liquidity, it is impossible to obtain absolutely precise conclusions!
That said, it seems that exchanges can easily obtain this precise data. If a cryptocurrency only has a futures contract listed on a non-compliant exchange, this exchange can indeed do whatever it wants with this cryptocurrency!
This also reminds us to ensure we trade on compliant exchanges, as such behavior is strictly regulated, and only with high costs of wrongdoing can user safety be ensured.