ICP analyst Fabio has drawn attention to unusual patterns in $ICP liquidations, reporting that long positions are being closed at rates far higher than shorts—92 times more in recent days.
According to Fabio, who specialises in prevention of market manipulation, risk management, and regulatory issues, the system is heavily leveraged and operates with minimal oversight. He describes the situation as far from what a healthy market should reflect, suggesting that current market mechanics may be amplifying risk for ordinary traders.
One notable observation from his analysis is that Bybit is reporting the majority of liquidations, despite Binance holding the bulk of $ICP exchange supply. Fabio cites an example from last October, when $8.9 million in long positions were liquidated on Bybit in a single day, while Binance recorded significantly lower figures. He notes that the reasons behind this discrepancy remain unclear, raising questions about exchange dynamics, order matching, and liquidity flows in high-volatility periods.
Fabio highlights that high leverage can quickly magnify losses. When prices move sharply against leveraged positions, exchanges automatically close trades to protect remaining capital, sometimes triggering a cascade of further liquidations. This chain reaction can create volatility spikes that affect both large and small traders.
He also stresses that liquidations concentrated on a single platform can indicate structural risks in how certain exchanges manage orders and margin requirements. While such events are not necessarily evidence of wrongdoing, they serve as a reminder that markets can behave unpredictably when leverage is widespread.
Fabio’s commentary serves as a reminder of the risks inherent in high-leverage trading. He emphasises that he is not a financial adviser and that traders should always do their own research. For participants in crypto derivatives, awareness of platform-specific rules, position sizing, and risk controls is essential.
Despite the intensity of recent liquidations, market participants note that these events also reveal underlying resilience. Prices stabilise quickly once panic selling subsides, and some investors view these swings as opportunities to reassess risk and strategy. Fabio points out that understanding these dynamics is increasingly important as crypto markets evolve and regulatory scrutiny grows.
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