In case you're somehow out of the crypto loop(yet on this sub) or just stumbled into our crypto sphere, Bitcoin's price has recently been on a tear. Even earlier today the price was still doing very well. And all of a sudden either a huge whale or a group of buyers just happened to make some sizeable purchases that had the price spike to $34,000. Granted, the price has cooled off a bit now but not before leaving a huge trail of blood and gore.
In just the space of 5 minutes(per Coinglass), we see $120M in rekt traders' money disappear. This of course meaning that traders who were using leverage to trade were liquidated as the price went too high(and too low as well in some cases). Most of these liquidated traders were shorts where traders who shorted expecting the price to fall were forced to buy back at a very high price and close their trade when it instead rose leaving them with huge losses.
As we see per Coinglass in just 5 minutes the 120 Million disappeared due to shorts and 10 Million disappeared due to long liquidations.The long liquidations were likely ironically those who used leverage expecting the price to go even higher but it cooled off and fell instead.
This is also a good reminder to make sure you place stop losses in case the price spikes up or down so you limit your losses in the worst case.
