Consider two traders entering positions at the same price point of 108,000 USD on BTC — one takes a long position, and the other takes a short position. The liquidation price for the long position is set at 106,000, while the short position's liquidation price is at 110,000.

In a bullish market where the price is trending upward, suppose the price rises to 108,800 and the long position trader decides to exit partially, taking profits. At this stage, the price often continues its ascent toward 110,000. This happens because the bullish traders are closing their positions, reducing buy-side pressure below the current price. Meanwhile, there is minimal selling pressure above, as bears (short-sellers) are positioned at risk of liquidation.

Crucially, there is no upward price momentum generated by opposing buy orders; rather, the price moves up only when it reaches the bears’ liquidation or stop-loss levels. At this point, the liquidation of short positions releases funds that partially compensate the traders who closed their longs, with the remaining portion collected by the exchange as fees.

From this perspective, entering short positions during a strong bullish trend often results in those shorts being liquidated before the price reaches their target levels, leading to losses for short-sellers. This dynamic explains why, despite multiple short entries during an upward trend, those positions are often "buried" or forcibly closed due to market momentum favoring the bulls.