Exchanges and market makers profit from liquidations by triggering price dumps that force traders into shorts, then liquidating those positions as long-side liquidity builds. Kosta Ouzas argues exchanges earn significant revenue from liquidations and fees, contradicting their public claims.
The price dumps. Everyone piles on shorts, and then they take all the shorts out. While all those shorts got taken out, all this long side liquidity gets built of everyone that was going along, and then they send it the other way and they make like. For anyone that wants to actually know, because funnily, some exchanges claim that they don't make any money off liquidations. But you can do deep research on this, and they do. They make a lot of money off liquidation. So, you know, well, that's how they make their money, right? They make their money from the fees and the liquidations.
