Yesterday, many people, like me, failed to hedge MMT and were cheated. There's nothing we can do, we won't encounter this kind of contract that can raise 20 times the amount of coins in one night for several years! I happened to come across this article and the analysis is quite impressive. Although speculation may not be entirely true, this textbook level market making technique is still worth dismantling! Overall, the core of this operation lies in creating bearish consensus first, and then harvesting bearish liquidity in reverse. Structurally, it can be divided into three stages: one ⃣ Pre market game: market makers set traps MMT opened high in front of the Bybit disk and then continued to decline, which is actually a signal induction: The purpose of this trend is to create a conditioned reflex in the market that the new currency is about to break. Especially with the recent downturn in the market, the overall new currency market is average, which makes it easier for market sentiment to turn bearish. This behavior logic will be reinforced. two ⃣ Opening strategy: Low opening lock up, OI stacking, centralized control of the market Choosing a low opening of 0.35 for the official opening is crucial: it is both lower than the average cost for retail investors and higher than the cost for market makers to build positions, and the three-day airdrop unlocking is a double squeeze of time and psychology. At this point, the cost of buying new stocks for retail investors has been penetrated, and large investors are starting to consider hedging. The market sentiment has completely shifted towards short selling. At this time, the market maker is preparing for subsequent reverse hunting, and he can—— Attract spot goods at a low level; Simultaneously establish hedging on the contract side; Ultimately forming a neutral position of 'spot abundance+contract emptiness'. In just half an hour after the opening, OI piled up to 100M on Bybit and Binance, indicating a high concentration of funds, with the main funds rapidly building positions and creating chip scarcity. If half of them are hedging positions held by market makers themselves, it means they control most of the circulating positions without spending millions of dollars in costs. The current status of the market maker: We have spot inventory, short positions, and liquidity control. Once they decide to pull the market, they are the 'creators' of the market. three ⃣ Accurate timing and liquidation of explosive positions: non-destructive pulling of inventory When the number of coins held by market merchants exceeds the circulating amount, they are equivalent to holding "101% of the coins". This state means they can pull the disk at any time: Whenever the price rises a little, a batch of short positions are forcefully balanced; Every time, it drives prices to continue rising in reverse; No need for additional buying, only using the opponent's margin to push prices, relying on market mechanisms for self appreciation. At the same time, they chose to start the rally after 4am, when the rates had just been refreshed, the cost of new empty positions had increased, the Asian market was sleeping, the response was slow, and the market depth was thin. In addition, OI has not significantly decreased after doubling the price, indicating that a large number of short positions are full positions rather than individual positions. This means: Every move made by market makers directly penetrates the short margin; In full warehouse mode, it will explode together with other positions; The result is more funds being fed back to market makers. This is the so-called 'lossless disk pulling' logic. Simply put, market makers are almost invincible in this game: They don't spend money on buying stocks, but instead recycle profits from buying stocks. Individual investors hedge, they make money; Short positions sell out, he makes money; The market fluctuates, he eats the rate; He doesn't even need direction, just the fluctuation itself. So, this wave of MMT's approach may not be just about smashing and pulling up the market. In the end, the market sees a surge in prices, but in reality, every step is not spontaneous and can be designed. Do you still want to play Zhuang? Where have you played before?