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There is a saying in the crypto world—when the market goes crazy, it’s often crazier than you can imagine. Especially during those straight-up surges, if you go against the trend and short, the risk level can be more outrageous than taking flying knives.
Why is that? Let me break it down:
**1. The ceiling for losses doesn’t really exist**
The worst case for going long is losing your principal. But shorting is different—crypto prices can rise 100%, 500%, even 1000%, and your losses will keep expanding infinitely. That’s the most deadly part of shorting.
**2. The higher the price, the more people are forced to enter the market**
When shorts lose big, they have to close their positions and cut losses, which means buying back. This forced buying pushes the price even crazier, causing more liquidations and creating a chain reaction of explosions.
**3. Rational analysis is worthless in the face of emotion**
You might think, “This price is already sky-high, it must pull back,” but the market could still be in a FOMO frenzy. In this emotional market, trying to guess the top is like bending down to pick up coins in front of a speeding car.
**4. Leverage is the biggest trap for shorts**
Even if you see the big picture correctly, a sudden sharp rally can trigger your margin warning. Before you know it, the market reverses, and your account gets forcibly liquidated.
**5. The final sprint before the bubble bursts is often the craziest**
Many times, the market has its steepest upward move just before topping out. How many people get caught in the “it’s about to fall” mindset and lose everything?
In the end, don’t fight a crazy trend, especially during a rapid surge. Sometimes, watching from the sidelines is not shameful—surviving and waiting for your own opportunity is the biggest win.