In the midst of a liquidation storm, who are the winners?

When media headlines suggest "potential $1.5 billion liquidation," the average person’s first reaction is excitement, but professional traders’ first response is risk management. Because liquidation doesn’t discriminate based on position; it only recognizes leverage.
If short positions are heavily liquidated, prices will accelerate in the short term; but if the market chases higher and longs pile up accordingly, the market will quickly find new counterparties. In an environment of increased volatility, making the right call is only the first step—surviving is the real key.
From a cyclical perspective, it’s crucial to observe the retest after a breakout. If the retest doesn’t break through key support, it indicates high lock-in of positions; if prices quickly fall back into the range, it suggests more short-term capital playing a game. No matter how large the liquidation scale, it’s just a catalyst for the market, not a determining factor.
Humorously speaking, the market is like an automatic washing machine, and leverage is the foam. The more foam there is, the faster it spins; when the foam dissipates, you’ll see whether the clothes are truly clean. The real winners are often those who can stay steady outside the drum while others are being thrown out.
In conclusion: $66,000 is just a number, but behind it lies a game of sentiment, liquidity, and leverage. It’s fine to watch the excitement, but participation should be cautious. After all, in the world of liquidation, the most expensive thing isn’t the opportunity—it’s losing control.