Why the Market Always Crashes When You're Winning

The crypto market doesn’t crash by accident during a pump—it collapses by design. Every euphoric rally is a setup engineered by the exchanges, where liquidity becomes bait, and traders become liquidity.

Here’s the playbook: as prices surge, exchanges quietly nudge retail traders into overleveraged longs. At the same time, hidden sell walls, spoof orders, and algorithmic volume distortions mask true intent. The crowd piles in. Then—snap. A sudden price drop triggers cascading liquidations, each one feeding the next like dominos falling into fire. This isn’t volatility. It’s orchestration.

Behind the scenes, the exchange profits on both sides—collecting fees, harvesting liquidations, and front-running price shifts with unmatched visibility. Traders think they’re reacting to market signals. In reality, they’re reacting to illusions coded by the very infrastructure they trust.

So why does the market crash mid-pump? Because that’s the moment retail is most exposed, and exchanges are most ready to strike. Crypto trading isn’t broken—it’s working exactly as the exchanges designed it: to drain, not reward. Play long enough, and the house doesn't just win—it writes the rules.

#marketcrash #CryptoRegulation