Who is right, who is wrong

[WellRozey]

Trading experts on this forum, please shine some light on this argument between a friend and I..

We were talking about the market behaviour that occurred on Oct 10 which made many people lose alot of money, and he said that this is necessary, and the reason why it must happen is because of those same leverage traders.

He said leverage trading is killing the chances of market surging, if billions are been staked on longs it will be difficult for the market to go that same direction..

I disagree, because I believe that it is those market makers that don't want those leverage traders to win, it doesn't and won't benefit them or they just don't want people to make a lot of money.

Who do you think is right or wrong.

[Darker45]

Why is there an argument, then? It looks like you have the same positions. You're saying pretty much the same thing. You don't seem to have opposing views.

If there's a huge buildup of longs, the prospect of big profit is so attractive that big players would force liquidations. I don't think market makers aren't involved in the process. They're certainly part of the stop hunt effort. They're certainly part of the group that manipulates the prices to trigger stop-losses, to burn those leveraged positions and make easy money.

[Mrbluntzy]

I disagree, because I believe that it is those market makers that don't want those leverage traders to win, it doesn't and won't benefit them or they just don't want people to make a lot of money.

The market makers who manipulates the market to dip and trigger the stop losses of many traders who were longing are the people that will take profits and have a benefit for their act, they also buy at a very low discount level after a lot of traders has already been cleared out, no that they don't want people to make money but them too are after their own profits.

[mustapha67]

The argument is in indeed a tough one with almost the same point of view. Leverage traders make a little investment to gain great opportunities which is related to the point that market makers in their business oriented skills also device dubious ways to take certain advantages where necessary.

Conclusively however, the argument seems to raise a point according to each person's view of what is possible with both categories.

[HONDACD125]

He said leverage trading is killing the chances of market surging, if billions are been staked on longs it will be difficult for the market to go that same direction..

I disagree, because I believe that it is those market makers that don't want those leverage traders to win, it doesn't and won't benefit them or they just don't want people to make a lot of money.

So what's the argument about? You both are basically saying different points about the same thing. He says that if there are longs worth a lot of money, the market won't go up, and you say that if there are longs worth a lot of money, market makers don't let the market go up because they don't want to lose money or want others to make a lot of money. In essence, it's the same thing, but you both have different points of views, and both could be correct, because it's not important for different opinions about the same point to have one wrong and one right.

That being said, I personally would say that you have a stronger point, because if market makers allow the market to go in the direction where people have so much money staked, they will have to pay a lot of money to those who make money from it, so they have to do their best to manipulate the prices and drag the market towards the direction where they will have to pay less and get more.

[passwordnow]

Both of you can be either right or wrong. What's the argument all about and why it has started? it doesn't make sense to argue about it when anything can be a reason why the market has been stopped with the progress due to the shorts. Because both leads to market manipulation and that's why it's not progressing as quick as it can be. But even so, we're seeing that the market is recovering and this is the usual way that every after correction has come.

[criptoevangelista]

Excessive leverage needs to be cleaned from time to time, as it is money that "does not exist". A highly leveraged market becomes very dangerous and with an extreme risk of "crash". The movement on the 10th was the biggest in crypto history, surpassing even the pandemic crash, and it's a good thing it happened, as now the market has much more asymmetry to rise in a healthy way.

[coolcoinz]

IMO it's mainly exchanges that destroy the markets. There's some proof by various online investigators that Binance was involved in market manipulation a few times before.

I'll give you a few examples.

In February 2024, BitForex, a cryptocurrency exchange based in Hong Kong, performed a suspected rug pull. Before going dark, an estimated $56.5 million in cryptocurrency was removed from the exchange’s wallets.

https://www.halborn.com/blog/post/explained-the-bitforex-rug-pull-february-2024

Now this money has resurfaced.

An onchain investigation by crypto researcher Eye has linked the mysterious Hyperliquid whale, who controls over 100,000 BTC, to Garrett Jin, the former CEO of BitForex, a now-defunct exchange embroiled in a fraud scandal.

https://www.tradingview.com/news/cointelegraph:bfff9d4e8094b:0-investigation-ties-100-000-btc-hyperliquid-whale-to-former-bitforex-ceo/

If this is true, the owner of an exchange stole 56m USD in crypto and then somehow knew about Trump's tariffs, or just decided to gamble, so he placed a massive short on the exact morning, minutes before Trump's tweet, most likely using stolen money.

The strangest thing about all of this is that such scammers are able to go free and do what they want. At the same time exchanges pare playing you because there were reports that many exchanges decided to close client's short positions during the crash, because they had no more longs to liquidate, so the exchange would have to pay shorters from its own pocket.

It's all a scam people. Don't be greedy and don't play this stupid game. Hold your coins offline!

[2Pizza410000BTC]

Trading experts on this forum, please shine some light on this argument between a friend and I..

We were talking about the market behaviour that occurred on Oct 10 which made many people lose alot of money, and he said that this is necessary, and the reason why it must happen is because of those same leverage traders.

He said leverage trading is killing the chances of market surging, if billions are been staked on longs it will be difficult for the market to go that same direction..

I disagree, because I believe that it is those market makers that don't want those leverage traders to win, it doesn't and won't benefit them or they just don't want people to make a lot of money.

Who do you think is right or wrong.

If you want to talk about the market situation of that day and want to know, then you must follow the newsfeed. The market situation of that day was the highest dumping of all time which has never happened before. We have seen some dumping before such as Luna scandal, FTX bankruptcy, Covid, the dumping that day was worse than the dumping that the market had in all these situations, the dumping that day was due to the increase in US taxes with China. When American President Donald Trump announced a 100% tax increase with China, then the market gave the highest dumping and there was a loss of about 19 billion dollars in that dumping. In this case, this news is the reason for the market dumping and the traders are suffering. Moreover, I am not expressing much opinion on what you mentioned here because what you have revealed will not be the reason for so much dumping.

[boyptc]

Who do you think is right or wrong.

If the majority here tells that your friend is wrong, are you going to be happy about that? or if it's the opposite, will you?

I think it's all about a good and healthy discussion that both of you are having. It's okay to disagree having provided some good source of what you are telling to him and him talking about it to you.

IMO it's mainly exchanges that destroy the markets.

Now this is a better answer, that's because every time that we're entering a bear market. It's always them that causes all of these troubles to begin with.

[pooya87]

It doesn't matter if it is right or wrong of if it is necessary to see the dump. What matters is that this recent dump was because of the economic war the US regime started against the rest of the world and the rest of the world is responding to those acts of aggression. For example the recent Chinese retaliation and sanctioning the USA where they banned export of crucial materials to the US that are used in a wide range of industries and the new massive tariffs on US shipments caused the crash in the US markets.