How Dumpers Get to Work: The Step-by-Step Dissection of Massive Liquidations
Liquidations aren’t random. They’re precision strikes. If you’ve ever watched your position get wiped out, it wasn’t bad luck—you were the liquidity.
1. The Setup: Luring in Leverage
Before the crash, they need bait—overleveraged traders. The goal? Stack the market with longs that can be liquidated later.
• Spoofing – Fake buy walls create FOMO.
• Wash Trading – Fake volume makes moves look real.
• Pump & Hype – Social media shills, “insider” leaks, influencer narratives.
2. The Trigger: The Sudden Drop
Once enough traders are trapped, it’s time to pull the rug.
• Sell Walls – Heavy sell orders block exits.
• FUD & Fake News – Suddenly, the same hype sources push panic.
• Market Sells – Large dumps trigger stops and liquidations.
3. The Cascade: Auto-Liquidation Hell
This is where it spirals. Forced liquidations dump into a thin market, fueling the crash.
• Margin Calls – Exchanges start force-selling.
• Panic Stops – Traders dump manually.
• Liquidity Vanishes – The price free-falls.
4. The Aftermath: Accumulation & Reset
The same players who dumped now buy back cheap.
• Shorts Cover – Profits taken.
• Whales Reaccumulate – The cycle resets.
• Narrative Flip – The “doom” talk stops.
How to Protect Yourself
1. Use leverage sparingly.
2. Watch open interest & liquidation levels.
3. Avoid obvious traps—if it’s too easy, you’re the exit liquidity.
4. Don’t chase hype—big dumps follow big euphoria.
Mass liquidations aren’t accidents. They are the game.
Executing this strategy on my lead copy trading account. If you want to grow with me, click here to copy my trades and 🚀💰.
El Shaddai: (Hebrew: אֵל שַׁדַּי) – “God Almighty, the All-Sufficient One.” His grace sustains.