#GateSquareAprilPostingChallenge The phenomenon of the collapse of SIREN/USDT prices amid rising Contract Volume (Trading Volume) and Open Interest


1. Short Selling Dominance (Short Selling)The rise in contract volume does not always mean people are buying (Long). If volume increases drastically while prices are falling, it indicates the aggressiveness of Short Sellers.
* Many traders open (Short) positions at the same time, which exerts significant selling pressure on prices in the futures market.
* This pressure often spills over into the spot market, causing prices to "collapse" due to strong negative sentiment.
2. Long Liquidation Event (Mass Liquidation)
This is the most common cause. When prices drop slightly, traders who open Long positions with high leverage will be hit with a margin call or liquidation.

* Domino Effect: When Long positions are liquidated, the system automatically sells those assets into the market to cover losses.
3. Distribution by "Whale" (Bandar
SIREN-7.17%
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