If you went to sleep last night without checking the market, congratulations, you avoided a 'devastating blow to your wealth.' However, those who were confidently shorting XRP are likely now crying in a corner with their blankets, unable to even type on their keyboards!
An irretrievable story: from $1.88 to $2.49.
Last night's XRP was simply a 'surprise box'—no one knew whether it was wealth or disaster before opening it.
From $1.88 skyrocketing to $2.49, an increase of nearly 30%. For those short sellers who thought 'XRP has risen too much, it should drop,' this is undoubtedly a 'thunderbolt from a clear sky.' Waking up, instead of seeing their funds 'cut in half,' they directly faced liquidation.
How severe are the losses for short sellers? Just doing the math is shocking!
Suppose a friend thinks they are very smart and shorts with 10x leverage, what happens next?
Shorted at $1.88, peaked at $2.49, the price directly rose by 32.5%.
With 10x leverage, the loss ratio is 32.5% × 10 = 325%!
What does this mean? If someone shorted with $10,000, they could end up owing the exchange $22,500. This does not include the platform's fees! Short sellers are probably going to have a tough time tonight.
Retail investors lose money, and institutions can't escape either.
Don't think only retail investors are 'losing everything' in this battle; data tells us that institutional funds flowed in $158 million but withdrew $26 million within 8 hours. These institutions probably didn't expect XRP's rebound to be so strong!
Retail investors suffered directly, losing $21.58 million, and many probably posted 'heartfelt reflections' in their social circles.
Why is it so devastating? The three fatal misconceptions of shorting XRP.
1. Overestimating one’s judgment: Market fluctuations are never easy for ordinary people to predict, especially for coins like XRP that are influenced by news.
2. Over-reliance on leverage: Leverage is a double-edged sword; it feels great when you win, but makes you question life even more when you lose.
3. Ignoring positive news: As soon as Ripple's good news emerged, market sentiment skyrocketed, and short sellers didn't react in time before prices soared.
So, what have the short sellers learned?
Never gamble on price fluctuations: Market movements are fast; betting on direction is often a matter of life and death.
Control risk: Leverage is not a cure-all; don't expect to get rich overnight.
Pay more attention to market news: Especially for coins like Ripple that have 'positive momentum,' short sellers must think twice before acting.
Last night's 'XRP short disaster' taught all investors a lesson: Don't go against the trend! When the market goes wild, you never know how crazy it can get.
In the end, short sellers, remember to have a cup of hot tea to calm down. After all, as long as you're alive, there's a chance to turn things around! Original content is not easy, please do not copy and paste 😄#XRP市值重回第三 $XRP
