When people say the crypto market is in a "whale trap," they refer to a situation where large investors or "whales" manipulate prices to deceive smaller traders. In this trap, whales may drive prices up or down, luring smaller investors into buying or selling prematurely. Once enough small investors take the bait, whales then reverse the price movement to profit from the smaller traders' positions, causing them losses.

This can occur during periods of volatility or after a rally when retail traders expect further gains but instead encounter sudden reversals orchestrated by whales. During a "whale trap," it's crucial to stay cautious, avoid chasing price movements, and stick to well-researched strategies.