Let's talk about why the more short-selling funds there are, the more fierce the rise is.

The underlying logic is the difference between investment and trading. Investment is to find value. You buy spot and look at the fundamentals, which is called investment.

Trading is a game of funds, and it is looking for popularity and hype space.

The basic principle in the secondary market is: there are always people shorting when it rises, and there are always people going long when it falls. Shorting and going long belong to the derivatives market, which is leveraged. In a rising market, if there is a huge amount of funds shorting, if you are a large institution, do you want to eat up the other party?

If there is a large amount of funds shorting, it will be forced to increase the position, and the short funds will increase their positions, and then the short funds will be forced to increase their positions until they are unable to increase their positions, and their positions will be blown up, and all the short funds will be pocketed. Only then will the market reverse.

So there is no need to worry about institutions constantly buying spot at high positions. In case they cannot sell them when they fall, they will suffer losses. Even if there is a loss, the amount of this loss is very small compared with the funds harvested in the derivatives market.

The market of meme is relatively sufficient in the middle market and there are not many institutional chips. The dealer pushed the market up 10 times in just a few trading days. This is the trend we often talk about. This trend has nothing to do with fundamentals and value, but only with capital game. It is difficult to end this market without losing all the counter-trend funds.

Many people understand that meme is pure air, a large number of shorts, and the dealer uses the capital advantage to raise the spot price, and then squeezes out in the derivatives market (leverage market). The harvest is almost done, and then there is a long-short double kill market. This is why you can still get 20% after waiting for a healthy correction of 0.02, because no matter from the market value, the price is not the original value of NOT

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