According to Cas Abbé on Twitter, a prominent Bitcoin whale trading at 40x leverage has seen their all-time PNL flip from $87 million in profit to a $1.9 million loss, highlighting the risks of high-leverage trading strategies. The post also suggests that market makers may be holding back significant market pumps until this large position is fully liquidated, which could affect near-term Bitcoin price volatility and impact overall crypto market sentiment (source: Cas Abbé Twitter, May 28, 2025). Traders should monitor whale liquidations closely as these events often precede significant price movements and shifts in liquidity.

According to Liquidity Doctor (@doctortraderr), a recent price action sequence showed classic market maker tactics in the crypto market. The first candle formed a bearish engulfing pattern, prompting retail traders to open short positions. Market makers then drove the price upward with the next candle, trapping these shorts and triggering liquidations (source: https://twitter.com/doctortraderr/status/1924311248738423081). Subsequently, a bullish engulfing candle encouraged retail traders to open long positions, after which market makers rapidly dumped the price, trapping new longs and causing further liquidations. This highlights the importance for traders to recognize and avoid common liquidity traps during periods of high volatility, especially when trading major cryptocurrencies.