@Dolomite #dolominte $DOLO

SHORT LIQUIDATION SUMMARY & WHALE PROFIT

1) Why does SHORT liquidation cause the price to INCREASE?

- Short losses → the exchange must BUY to close the Short position (market order).

- This forced buying pressure pushes the price ↑ → triggers additional Short liquidations → short squeeze → the price pumps further.

2) Why does LONG liquidation cause the price to DECREASE?

- Long losses → the exchange must SELL to close the Long position (market order).

- This forced selling pressure pushes the price ↓ → triggers additional Long liquidations → long squeeze → the price dumps further.