$VELVET High OI + Major Liquidation Imbalance VELVET is currently trading around $0.10, while Open Interest has climbed above $7M, compared with roughly $3–4M previously.The interesting part: price has fallen heavily while OI remains elevated/increases. This tells us leverage is still building, but OI alone cannot confirm whether the new positions are longs or shorts.
The liquidation map shows a major imbalance:
🔹 Upside short liquidations: ~$1.1M–$1.25M
🔹 Downside long liquidations: only ~$50K
🔹 Major short clusters: $0.103 and $0.118
🔹 Downside clusters: roughly $0.094–$0.096
This suggests significantly more short-side liquidation exposure above the current price than long-side exposure below it.If price pushes through $0.103, the concentrated short liquidations could potentially create a cascade of forced buying toward higher liquidity zones.However, the key uncertainty remains who is behind the $7M+ OI. Until funding, OI changes, volume and liquidation data confirm the positioning, the liquidation map should be viewed as a potential volatility/squeeze setup—not a guaranteed direction.
High leverage + asymmetric liquidation structure = VELVET is worth watching closely.
The liquidation map shows a major imbalance:
🔹 Upside short liquidations: ~$1.1M–$1.25M
🔹 Downside long liquidations: only ~$50K
🔹 Major short clusters: $0.103 and $0.118
🔹 Downside clusters: roughly $0.094–$0.096
This suggests significantly more short-side liquidation exposure above the current price than long-side exposure below it.If price pushes through $0.103, the concentrated short liquidations could potentially create a cascade of forced buying toward higher liquidity zones.However, the key uncertainty remains who is behind the $7M+ OI. Until funding, OI changes, volume and liquidation data confirm the positioning, the liquidation map should be viewed as a potential volatility/squeeze setup—not a guaranteed direction.
High leverage + asymmetric liquidation structure = VELVET is worth watching closely.