Market maker whipsaw is never for your little chips.

Having been in the crypto space for ten years, I have seen too many retail investors cursing the market makers at the first sign of a drop, thinking that the market makers are only focused on the small amount of coins they hold. The truth is: market makers whipsaw not to seize your chips, but to be able to pump higher and sell more steadily in the future.
Let me share an operation that I have witnessed with my own eyes.
There is a small coin called METIS (an anonymous small-cap coin, not a real duplicate name), with an initial price of 1.2U and a circulation of 10 million pieces, with retail investors holding 60%. A small team has accumulated 4 million pieces at the bottom, but they do not dare to push the price directly. Why?
Because if we force it, once it reaches 1.5U, early retail investors will sell off, and the team won't be able to hold it at all, resulting in no one to support it, and it will fall back on itself. So it's necessary to Whipsaw.
Their whipsaw method is very systematic:
Phase One: Silent Downtrend
The price of the coin slowly declined from 1.2U to 0.9U, with no volume and no news. Retail investors started to panic: "Is it hopeless?" "Let's run, don't let it go to zero." So they began to cut their losses, while the market maker quietly accumulated around 0.9.
Phase 2: Sharp Decline and Rebound
The price of the coin suddenly dropped sharply, hitting a low of 0.7U, then quickly rebounding to 0.95. Many people thought it had bottomed out and rushed in to buy. As a result, the market maker once again crashed the price below the previous low, directly hitting 0.65. All those who bought the dip got buried, and their mindset collapsed as they sold at a loss.
Stage Three: Create Panic
In conjunction with the FUD news: "the project team withdrew liquidity" "big players are fleeing", the coin price plummeted to 0.5U. The market was in despair, retail investors were hopelessly liquidating, while the market maker was accumulating a large amount of shares in this range.
Finally, V-shaped reversal + quick pullback
The market maker quickly pulled the coin price back to 1U with a small amount of funds, creating a "golden pit." Those who previously cut their losses do not dare to chase, while the new entrants have their costs around 1U.
After this round of cleaning, the market maker's chips increased from 4 million to 6 million, but the average price is even lower. The key point is that the weak floating chips have been cleaned up, and the subsequent upward pressure is very light.
The essence of Whipsaw is not to seize your coins, but to change the players - to wash out low-cost retail investors and bring in a group of higher-cost, less likely to dump their holdings.
So next time you see a sharp drop, don't just blame the market maker. Once you understand it, you'll know: this isn't the end, but rather the market maker's preparation for a pump.
In the past, a person would stumble around in the dark, but now the light is in my hands.
The light is always on, will you follow or not?