Whoa, ADA's recent plunge has completely shattered retail investors' confidence. In 12 hours, the liquidation ratio hit 346 times— in other words, for every 1 short position liquidated, 346 long positions were forcibly closed. The screen is filled with curses, with comments like "The market is irrational" and "Someone's manipulating," but the most common sentiments are these two. However, I see it differently—this isn't irrationality; it's institutions executing precise risk management and position layout. Today, from the perspective of institutions, I'll break down the logic behind this "slaughter" so you can see clearly why you're always the one getting harvested, and how to avoid the pitfalls.

First, let's understand a fundamental question: why do institutions specifically target ADA at this moment? Simply put, it's two words—profitable. Previously, ADA released a bunch of "good news," such as increased capital activity, new developments in the ecosystem... Retail investors see this and get excited, thinking "This is the bottoming out." But institutions don't see it that way. These news events are just bait for them, used to lure retail investors into the market. The typical institutional tactic is this: first, use these news to slightly pump the price, making retail investors believe the trend is reversing; then, secretly move to a major exchange to establish short positions, preparing for the next move.

There's a common technique used by institutions called "long-short segregation." It sounds complicated, but it's actually about exploiting differences in user composition across different exchanges to precisely harvest. On a mainstream platform, most users are retail investors, so institutions release positive news there to attract retail longs; on another large exchange, where institutional users dominate, they quietly accumulate short positions. When retail longs on one side reach a certain scale, institutions suddenly dump the price, coordinating actions on both sides to complete a full harvest.