I've been watching the liquidation rankings closely these past couple of days and noticed something interesting.

With the same level of volatility, long positions are getting liquidated much harder than shorts. What does this indicate?

First—there's a crowded short-term long position. That's why the market has been dropping sharply lately; it's basically a cleanup, specifically targeting those gamblers who chase the pump and dump. That being said, after that washout on October 11, the scale of long liquidations now can't even compare to before. They've been harvested wave after wave, and most of the retail traders have been wiped out. Those who should've exited already have, and the ones left are the seasoned players. There's not much left to squeeze from the long side anymore.

Second—the real show might be on the short side. From a mid-term perspective, the grand liquidation of shorts has only just begun...