Yesterday's $ETH short squeeze was a masterclass in supply shock mechanics.
You can't dump 5% of a $250B asset's supply into a downtrend and expect smooth sailing. The Ethereum DAT absorbed massive sell pressure while exchange flows were lopsided.
Result? Violent upward spikes that liquidated overleveraged shorts.
Lesson: Don't fade supply dynamics when institutional absorption meets retail panic. The snapback is always more violent than the dump.
You can't dump 5% of a $250B asset's supply into a downtrend and expect smooth sailing. The Ethereum DAT absorbed massive sell pressure while exchange flows were lopsided.
Result? Violent upward spikes that liquidated overleveraged shorts.
Lesson: Don't fade supply dynamics when institutional absorption meets retail panic. The snapback is always more violent than the dump.