#ETH Short positions surge 8,300% in two weeks, reaching a new high since June 2022—truly astonishing numbers.
But the large short positions on Bitfinex may not necessarily be directional bets.
They could be hedges, arbitrage, or neutral market-maker positions.
Reading these positions straight as “someone has insider information,” while ignoring the exchange users’ composition and motives.
A large short position doesn’t mean it’s destined to fall, nor does it mean a squeeze is inevitable—it depends on which direction the price moves first.
But the large short positions on Bitfinex may not necessarily be directional bets.
They could be hedges, arbitrage, or neutral market-maker positions.
Reading these positions straight as “someone has insider information,” while ignoring the exchange users’ composition and motives.
A large short position doesn’t mean it’s destined to fall, nor does it mean a squeeze is inevitable—it depends on which direction the price moves first.
