Being awakened by a margin call notification in the middle of the night, I opened my eyes to see my holdings so green they looked like a leek field—this rapid decline was so fast I barely had time to curse.

Scrolling through Telegram groups and Discord, everywhere is full of complaints like "buying the dip halfway up the mountain," and some are obsessing over the "market manipulation theory." To be honest, brothers shouting "manipulation" at every dip probably still need to pay a few rounds of cognitive tax in this circle. This flash crash was not some "outrageous dump," but a textbook-level liquidity stampede. Unfortunately, most retail investors are completely unaware of this underlying logic.

After years of experience, today I’ll explain clearly—understand these two key concepts so that next time you face a similar blowout, you won't panic and sell recklessly.

**Number One Killer: The US Treasury Bond Issuance "Money-Absorbing Beast" Unleashes Full Firepower**

First, understand the big picture: Recently, the US government almost had a shutdown, and the Treasury's cash reserves (the TGA account) were nearly exhausted. The entire market was like a reservoir in the dry season—liquidity available was painfully scarce. The Fed previously tried to add some liquidity to the banking system, but those funds were quickly drained by the bond market’s bottomless pit.

This time, they auctioned three-month and six-month short-term bonds, planning to raise $163 billion, but the actual sale soared to $170.69 billion. Don’t get confused by the numbers—simply put: the hot short-term money circulating in the market was pulled out by $163 billion in an instant.

To give an analogy: your home faucet already has weak water pressure, then a nearby construction site suddenly connects a large pipe to grab water aggressively—your tap will hardly flow. In periods of ample liquidity, this isn’t a big deal, but now we are in a tightening cycle! In the crypto market, high-risk assets depend entirely on liquidity support. If this blood is so suddenly drained, can the coins withstand it?