The crypto ecosystem has never been about rules; both bulls and bears get their fair share of losses. Your long positions keep falling into the red, and in despair, you decide to go short. Just then, a surge hits, causing a liquidation and forcing you out. Even those worthless coins that should have zeroed out long ago can spike during your short, leaving you with a total loss. Conversely, when you think the market has stabilized and prepare to go long, it immediately turns downward.

Looking at recent data makes it clear. In the past 24 hours, $37.35M worth of BTC short positions were liquidated, and ETH saw even more severe liquidations with $51.07M in shorts cleared. Worldwide, 87,746 traders were forced out on this day, with total liquidations reaching $209.75M. The market is like a meat grinder, indiscriminately swallowing your principal.