2026-01-18 14:26:39

Why are low-circulation tokens combined with high leverage contracts so popular? The logic is actually quite simple.

What does low circulation mean? A small amount of capital can move the spot price, which is fundamental. The real killer move is: after opening perpetual contracts simultaneously, the volatility on the spot side will be amplified to the contract side through the mark price mechanism, leading to a chain reaction of liquidations.

The manipulator's tactics are roughly as follows—first, create momentum with trading volume and craft narratives to attract retail investors. When retail investors see high enthusiasm, they follow suit by piling up leveraged positions on the contracts. Once the positions accumulate to a certain level, the manipulator suddenly pulls or dumps on the spot side, causing the price to break through key levels instantly, triggering chain liquidations. The mark price then surges or crashes, causing one contract account after another to be liquidated, and finally, the cheap tokens are eaten up by big players.

This combination is effective mainly because, in a low-circulation environment, the price discovery mechanism itself is fragile. Coupled with the leverage amplification effect of contracts, the risk grows exponentially. Retail investors are essentially the prey in this scenario.

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ChainBrain

· 22h ago

Once again, the old trick of cutting leeks. Low circulation coins + high leverage is just a meat grinder; retail investors get slaughtered when they enter. They really treat us as ATMs, with a few trades from manipulators enough to smash the price to the ground. I've already blacklisted these kinds of coins; no matter how tempting, I won't touch them. Low circulation means no real liquidity support; it collapses at a single poke. I've seen too many people go bankrupt and lose everything due to contract liquidations, and some still insist on gambling. I truly can't believe it. The chain reaction of liquidations is written perfectly, clearly showing the process of big players hunting. Contracts are just leverage hell; unless you can predict the future, you'll be cut sooner or later. It looks like a simple routine, but for retail investors, executing it is a nightmare.

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GasFeeSobber

· 01-20 15:36

Low circulation coins + high leverage is a hunter's paradise for big players; retail investors, just wait to be harvested. --- It's the same old trick again, the mark price moves exactly in sync, there's no way to hide. --- That's why I only deal with mainstream coins; small coin contracts are too risky. --- Retail investors should really be cautious; being wiped out by a single mark price is just too outrageous. --- Price discovery is fragile + leverage amplifies it, risk grows exponentially... Basically, it's a death trap. --- I've seen too many small coin contract liquidations; manipulators' logic is indeed simple and brutal. --- Low circulation is just for manipulators to pump and dump easily; retail traders really shouldn't touch contracts. --- The mark price mechanism on low circulation coins is basically a harvesting machine. --- Once positions accumulate to a certain level, they start dumping; this combo can't be defended against. --- I'm telling you, perpetual contracts on small coins are not trading tools at all, just gambling machines.

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PuzzledScholar

· 01-18 14:53

It's the same trick of cutting leeks again, I've seen through it long ago. Low liquidity coins with high leverage are just like hell mode; retail investors really need to wake up. The mark price mechanism is designed to amplify volatility; anyone who touches it will die. Once the chain reaction of liquidation occurs, the leeks should be fully harvested. I wouldn't even touch this kind of coin; it's too easy to get caught. Are there still people daring to play with low liquidity and high leverage? I really don't understand. When the price discovery mechanism is fragile, you should stay away; there's no need to seek death yourself. No matter how deep the market maker's tricks are, I won't fall for them; one loss is enough.

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StableGeniusDegen

· 01-18 14:52

Damn it, it's the same story again. Retail investors are always the last to buy in.

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WalletWhisperer

· 01-18 14:35

It's the same old trick again; low-circulation coins are basically the hunters' playground for the whales.

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GateUser-afe07a92

· 01-18 14:31

It's all the same routine, how many times have I seen this? Low circulation coins are just a hunting ground for big players. Retail investors are still shouting to get in, not realizing they've already been surrounded. Futures contracts, leverage is basically gambling, and low circulation coins are an even bigger risk. Basically, it's the ultimate version of cutting leeks, and the mark price can wipe everything out in one wave. Perpetual contracts paired with low circulation coins—this combination is perfect, truly born for harvesting. I've seen too many people get liquidated overnight because of this, and now I wouldn't touch such coins at all. The liquidation mechanism is just a trap; manipulators have long planned their routines. What does low circulation mean? It means your money isn't worth much. I never touch these coins; it's too obvious a conspiracy. Futures liquidation and all that, just listen to the stories, really don't play with it.

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