Many novice traders who try shorting for the first time on the top gainers list often end up taking a big loss. Strangely, their market direction judgment isn't actually bad; the real problem lies in severely underestimating "how brutal the upward move can be."

Initially, they get their risk calculations wrong. When going long, the maximum loss is your principal—if you put in 10 U and the position blows up, you lose only 10 U. But shorting is different; the theoretical gains are limited, while losses are bottomless. A 10 U short position, once the market spirals out of control, can easily lose more than you imagine, dragging you into an abyss.

Why does the top gainers list particularly favor shorts? Simply put, it's where the market sentiment is at its highest. Retail traders chase the rally, platforms push the list, KOLs shout buy signals—every new buyer entering the market is like adding fuel to your short position.

There's also the issue of market manipulators controlling the price. Coins with low circulating supply can skyrocket with very little capital, making it incredibly cheap to push the price higher. Manipulators keep driving up the price, forcing shorts to cover their positions one after another. You might think you're at the top, but in reality, you've already fallen into a short squeeze trap.

Liquidity traps are also deadly. Prices soar rapidly, but the depth of buy and sell orders is as thin as paper. You wait for a pullback to enter, but all you get is a short-term spike, and a single red candle can trigger your stop-loss orders to be filled.

Funding rates are even more dangerous—when shorts increase, you're not only facing wrong market direction but also daily payments to long positions. The longer you hold, the more interest accumulates, and eventually, this mental toll often causes traders to lose their composure.

The most terrifying aspect is the psychological obsession—"This must fall." But market madness never follows your logic.

To survive longer, the solution is straightforward: avoid touching the top gainers list if possible. Better to miss some opportunities than to clash head-on with market sentiment. If you really want to participate, set strict risk limits—use hedging or options for protection, and never go naked short. Focus only on the most liquid mainstream coins, and stay away from small-cap "meme coins." When market sentiment truly cools down and trading volume shrinks, then consider entering.

In the crypto world, the most dangerous time to short is never during a decline but when everyone is frantically buying in. This is a pattern that's often overlooked but is deadly.