woke up to some crazy liq

last i saw this was 2021 for sure

perps positions completely wiped

nothing unmanageable, just a big shock for me

i hope everyone is fine and take some time off if you need 🙏🏼

a few coins went to zero

https://x.com/ReetikaTrades/status/1976864779844436038

When the market turns like this, there’s usually a pretty straightforward playbook for the aftermath.

1) Market bleeds out and MMs are offline and start refilling by first taking out big spot and perp arbs on assets.

2) Once exchanges and API feeds are back online, market makers and big traders start biting on big orders to bring the market back to equilibrium.

This is met with liquidation orders being processed. Liquidation orders are processed at the top of the exchange order queue so it’s very juicy to pick off if you have balance sheet.

Given the size of this liquidation (~$25-$40bn) it will take a while to chew through this.

3) Once dealers fill long they will start unwinding spot and perp when the market is back to equilibrium. This is when the market hits a local maxima and the Dalai Lama chart starts hitting.

Some assets that have tighter supply will look better than others.

4) Dealers unwind over the next 24-72 hours depending on the liquidations and the market absorption. This is generally harder on weekends because no ETFs.

5) Market finds a natural floor and ceiling and starts a new anchor

Note: this is assuming that the market’s headline risk has mostly subsided. In the case this isn’t true, there is a lot more room for pain depending on leverage ratios.

Cobie Reflects on Severe Altcoin Liquidations, Urges Focus on Conviction Over Leverage and Momentum

Source: https://x.com/cobie/status/1976788855006302686

🎢🧨 #BTC CQ: Trump was the catalyst, but leverage is the real fragility underneath it all.

Altcoin OI: -28.58B (-41%)
Bitcoin OI: -10.69B (-24%)

This is a Covid-19 style wipeout.

MORE THAN $19 BILLION IN CRYPTO POSITIONS LIQUIDATED IN THE LAST 12 HOURS

*The largest single liquidation order happened on Hyperliquid - ETHUSDT value $203.36M

*$10B+ liquidated on Hyperliquid
*$4.5B+ liquidated on Bybit
*Binance reported only $2.5B in liquidations

*The actual total is likely much higher as Binance  only reports one liquidation order per second: CoinGlass

Some Estimates suggest between $30B to $40B has been liquidated

i’m more of a btc maxi now

https://x.com/0x_kun/status/1976881017240928632?s=46&t=nluSw7cwYGx8zFxfoYi5Iw

deja vu

back in aug 2024, i was wiped majority of my port during the yen unwind (https://news.1rj.ru/str/cryptomumbles/9580) and honestly i was quite rekt mentally as well

forced me to learn a lesson which protected me today (https://news.1rj.ru/str/cryptomumbles/10870)

took a long mental reset before i bounced back and started trading again, then came AI agents szn in Q4 in which i made it all back and more

when august came this year, i honestly felt some ptsd and went a bit more defensive thinking that something similar might happen again, but who knew that it would be 2 months down instead (i believe catching most offguard)!

today, its kind of a similar vibe

i lost a similar dollar amount as to aug 2024, but now its a manageable fraction because i've learned to take profits and manage risks after a scarring lesson

maybe we'll get a chance to run it back up again in the same pattern - a redemption after a bloodbath

point is, there will always be another chance, another opp, another way out

be optimistic long term in life and it finds a way to reward you, don't lose hope and always talk to close ones if needed

take a break, appreciate the beautiful skies, and little things in life because these have helped me tremendously (as stupid as it sounds)

secondly, remember to take the lessons learned to heart and to never repeat the same mistakes again

knowledge is not power until applied

just wanted to leave this here before i step away from the screens to take a break

then we'll go again

added more deposits into these two vaults on Lighter

it really is unbelievable

https://x.com/polymarket/status/1971661529922879873?s=46&t=nluSw7cwYGx8zFxfoYi5Iw

suicide stories are starting to surface

please check in on your friends 🙏🏼