#BTC #ETH

Many people are curious why, before James reduced his position in the Pepe long, Bitcoin clearly reached its liquidation price (107600), but Hyperliquid did not liquidate it;

There are two reasons:

1: The exchange's liquidator needs to assess the current market liquidity before liquidation. If someone's position is large enough, like James's more than 700 million long position, then the liquidator will not immediately liquidate at the liquidation price; otherwise, it would cause significant price spikes leading to liquidation, so generally, a buffer space is given to large holders;

2: Liquidation is calculated based on the mark price, which can relatively avoid errors caused by price spikes, and there will be a liquidation order queue during liquidation. That large holder's position may be about to enter or has already entered the liquidation queue;

What’s interesting here is that at the edge of this large holder's liquidation, Bitcoin suddenly surged by 1200 points. I believe this is not James buying spot to rescue himself, but rather a behavior of smart money speculating that after James's liquidation, there would be a price spike upwards leading to a rush to buy.