Observing the trends of popular cryptocurrencies like $RIVER$, a pattern emerges — after a rapid plunge, prices often bounce back near previous highs. This is no coincidence.

Why do the market makers do this? There are three main reasons. First, to profit from the spread and fees. Retail investors panic and buy the dip during a sharp decline, while the market makers, after pushing the price to a certain level, switch to long positions to ride the second wave, with the intermediate funds providing stable income. Looking at past examples like MYX, COAI, and even the older IP coin, they all followed this routine.

Second is the time cost of building a position. Large players need time to establish short positions, so the price often oscillates at the top. This serves both to disperse their build-up and to test liquidity.

The third and most painful reason — the failure of liquidation mechanisms caused by liquidity exhaustion. I have personally experienced this: during a rapid decline, opposing orders disappear. My short position should have been liquidated at the stop-out line, but the system couldn't find a counterparty, and I survived. However, this is a double-edged sword; if the price rises again, I will definitely be liquidated without doubt.

This is the trap. When the first wave of selling occurs, those orders that should have been liquidated are still alive. Don’t be greedy for rebound profits; close these ticking time bombs quickly. Exiting alive is the true victory.