👇1-11) We remember the weekends when large liquidations occurred, mysteriously always around the low liquidity hours between 6 am to 7 am Sunday Asia time (Saturday 6 pm to 7 pm ET). Those days were when liquidity providers and crypto exchanges with their market-making desks (prop desks or treasury mgmt. desks as they call them now) were liquidating retail traders.
👇2-11) After regulatory criticism during the 2021 summer, crypto exchanges limited their 100x leverage (125x in the case of Binance) offerings. They lowered the default leverage lower than 20x, which previously allowed a bucket shop operating mentality. But with more regulatory scrutiny, operational compliance, and the changing investor market structure, those highly leveraged longs are more challenging to wipe out.