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Kosta Ouzas explains how market makers harvest the short-side liquidity that built up since December 2024. Large pools of orders get displaced as liquidity providers move through the market, a normal part of how price discovery works over time.
Kosta Ouzas explains how market makers harvest the short-side liquidity that built up since December 2024. Large pools of orders get displaced as liquidity providers move through the market, a normal part of how price discovery works over time.
But what's going on in the market currently is the same thing. We have liquidity on the short side. This is a short pool here, massive amounts of shorts that have been building up since the last price discovery that we got into a while back in December 2024. So we've been building this massive amount of liquidity on both sides and the market makers collectively, and then people that can move the markets have been harvesting that liquidity impulse. There's another big displacement of liquidity right there. And we had a small one here. So this is business as usual. There's nothing changed. Nothing has changed. It just takes time to play out.
