A recent analysis by @agintender explores the growing trend of using a "low circulation, high control" strategy in cryptocurrency markets, combining spot and perpetual contract trading. In low circulation environments, small amounts of capital can manipulate spot prices. When high-leverage perpetual contracts are introduced, the transmission of spot prices to mark prices amplifies liquidation effects.
Manipulators reportedly increase market hype through volume manipulation and narratives, guiding retail investors to accumulate one-sided leverage on the contract side. They then trigger key liquidation thresholds by moving spot prices, causing a chain reaction of forced liquidations, known as "short squeezes" or "long squeezes." The core logic is that the spot market is controllable, and the contract market is exploitable, allowing manipulators to convert liquidation liquidity into exit liquidity.
Analysis Highlights Popularity of "Low Circulation, High Control" Spot and Contract Strategy
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