XRP's Incredible Market Surge! Short Sellers Suffer a 'Bloodbath', Retail and Institutions Wail
If you went to sleep last night without checking the market, you truly dodged a bullet and avoided a 'wallet hemorrhage'! Those who thought XRP was going to drop and ended up heavily shorting it are probably crying so hard now that they can barely type on their keyboards.
Last night, XRP was like a 'bomb box'; no one knew if it would be a surprise or a shock until it was opened. It skyrocketed from $1.88 to $2.49, an increase of nearly 30%! Those who shorted must have woken up to find their money not just halved, but completely wiped out, and now owe money to the exchange—what a disaster!
You might wonder how tragic the situation is for these short sellers. Let me do the math for you. Suppose someone thinks they are very savvy and uses 10x leverage to short; what happens? They shorted at $1.88, and the price soared to $2.49, shooting up by 32.5%. With 10x leverage, their losses snowball, and they end up owing the exchange over $20,000! This doesn't even include transaction fees!
It's not just retail investors; institutions didn't escape either. Although they made $158 million initially, they pulled out $26 million within 8 hours, clearly not expecting such a strong rebound from XRP! Retail investors suffered even more, likely posting heartfelt laments in their social circles.
So why did shorting turn out so badly? It boils down to three major mistakes:
First, they overestimated their judgment, thinking the market would move according to their expectations;
Second, they overly relied on leverage, ending up losing everything, even their underwear;
Third, they ignored positive news, leading to a price jump as soon as good news emerged.
Therefore, short sellers need to remember this lesson:
Don’t gamble on price movements lightly; the market is unpredictable;
Control your risks and don’t think about getting rich overnight with leverage;
Pay attention to market news, especially for assets like XRP that have 'positive momentum'; always think twice before acting.
Last night's 'XRP Short Seller Disaster' taught all investors a lesson:
Don't go against the trend! When the market goes crazy, you have no idea how crazy it can get. So, we need to be cautious and not let our wallets suffer!
