No conspiracy theory needed to explain the short squeeze during the scheduled maintenance of Bitmex

Bitcoin is more resilient than stocks to technical glitches in the exchanges, because stocks are traded on 1-2 exchanges (sometimes only 1), but Bitcoin is traded on many exchanges, like fiat currencies (Forex).

I think that the Bitmex downtime had some role (when it was offline arbitrage bots was offline too, causing liquidity to decrease and make short squeeze more probable), but most journalists and "Bitcoin analysts" will exaggerate it.

If Bitmex did not went down to maintenance, it's very probable that the short squeeze would happened anyway. Short positions to long positions ratio on Bitfinex were at record high (see "BTCUSDSHORTS-BTCUSDLONGS" on TradingView).

No conspiracy theory is needed to explain the short squeeze. It's obvious for all market participants that the best time for short squeeze is when the liquidity is low and short positions on Bitfinex (one of the major spot exchanges allowing shorting on margin) are at record high.

This is why "smart money" started to open long positions around the time when liquidity is expected to be low (during the Bitmex scheduled maintenance around 40% of the liquidity was missing) and short positions at record high level. No conspiracy, nothing special, just plain heavy market buy orders.

When Bitmex is down the arbitrage bots are also down (or should be if their creators are wise). This additionally decrease the liquidity on other major exchanges.

It was obvious that the short squeeze would happen while 40% of liquidity is missing, so it was self-fulfilling prophecy.

No need of conspiracy theory, all market participants who placed "buy" orders to take advantage of the short squeeze were the cause of the event, not "someone".

The Bitmex maintenance was scheduled. So, it wasn't insider trading. Everyone could have traded it, so it was a pure technical reaction.

It was obvious that the best time for short squeeze is when the big futures exchange is down (and the arbitrage bots giving liquidity to other exchanges).

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