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Answering a community member’s question: A not-so-savvy girl fan aped into the $esports knife catch,
here’s why I told her not to.
Basically, after watching $cheems and the previous $aria collapse, a lot of people like to gamble on the crazy rebound after a dump, but they ignore a lot of the trading nuances.
In this market, there aren’t many communities still actively trading, and even fewer that actually discuss trading strategies instead of just shouting long or short.
With cheems, it was a market maker issue.
With aria, the expectation was based on dual positions in spot and perp contracts.
Following up on yesterday’s thread about current meme coins: it’s almost impossible for project teams to dump spot, open perps short, and print easy money.
In reality, this kind of play rarely works and there’s not much to gain.
If you dump spot and no one’s buying, and perps OI doesn’t make sense, it’s hard to profit from shorts.
If you try to short, you’ll get caught in a short squeeze and forced liquidations, both from ADL and from shorts taking profit—we didn’t see that here.
Second, with cheems, there was no major spot dump. With aria, they only used spot to do a final exit move, and that was just whatever they could pull, some even from their own pool. It wasn’t like tokens were being swapped between sell orders on the open market.
The girl just didn’t get it, but at least she cut losses quickly last night.

ALERT的会所
@BTC_Alert_
10-27
Just drove out to eat noodles and sweet potato noodle nests, $cheems profited 37k.
Today was not wasted.
The bottom should’ve been fully eaten up by me, but midway it triggered 4 ADL to force-liquidate me.
Otherwise the liquidation price would’ve been 0.0014-0.0015.
I rarely x.com/BTC_Alert_/sta…


The "Answering Questions from Group Members" series primarily focuses on discussions of trading events and exchanges of trading techniques.
It does not favor any particular trading instrument or offer any advertisements.
It mainly aims to help community members find answers to similar questions.
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Disclaimer: The content above is only the author's opinion which does not represent any position of Followin, and is not intended as, and shall not be understood or construed as, investment advice from Followin.
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