Recently I’ve seen quite a few people shorting ZEC getting liquidated.
I still want to remind everyone of one thing: try not to force a short on these “weird coins,” especially don’t short with high leverage.
The reason is actually very simple.
First, the least logical thing about these “weird coins” is the rule: “If it has risen too much, it should fall.”
You think it’s already outrageous that it has pumped 5x—yet it may still keep pushing higher.
Second, liquidations of short sellers themselves will continue to drive the price up.
Price rises → short sellers stop out and get liquidated → they’re forced to buy back → the price keeps rising → more short sellers get liquidated.
This is a classic short-squeeze scenario.
Third, and most importantly:
Even if your directional bet is correct, it doesn’t mean you can survive until it drops.
The “weird coin” you picked may indeed fall 50% later, but if it keeps surging upward first, your position might already be gone.
When leveraged shorting meets this kind of continuous squeeze, the margin for error is truly very low.
So I’ve always felt that when you run into these “weird coins,” it’s better to miss the opportunity than to do random shorts.
Opportunities in the market are infinite, but your money is limited! #闪迪将于9月21日纳入标普100
I still want to remind everyone of one thing: try not to force a short on these “weird coins,” especially don’t short with high leverage.
The reason is actually very simple.
First, the least logical thing about these “weird coins” is the rule: “If it has risen too much, it should fall.”
You think it’s already outrageous that it has pumped 5x—yet it may still keep pushing higher.
Second, liquidations of short sellers themselves will continue to drive the price up.
Price rises → short sellers stop out and get liquidated → they’re forced to buy back → the price keeps rising → more short sellers get liquidated.
This is a classic short-squeeze scenario.
Third, and most importantly:
Even if your directional bet is correct, it doesn’t mean you can survive until it drops.
The “weird coin” you picked may indeed fall 50% later, but if it keeps surging upward first, your position might already be gone.
When leveraged shorting meets this kind of continuous squeeze, the margin for error is truly very low.
So I’ve always felt that when you run into these “weird coins,” it’s better to miss the opportunity than to do random shorts.
Opportunities in the market are infinite, but your money is limited! #闪迪将于9月21日纳入标普100
