Celsius Network shook up the entire crypto space with bankruptcy filing during the early trading hours. The native token CEL also responded negatively as the asset withstood a drop of nearly 50%. However, the community led a short squeeze in an attempt to recover the loss incurred as they believed the withdrawals may not be resumed ever.
The community had earlier attempted a similar action of a short squeeze which had significantly risen up the prices by 100%. A similar action was attempted amid the fear of losing all the funds, a couple of hours before. Short squeeze refers to mounting extreme buying pressure in order to eliminate the shorts has become pretty common nowadays. Therefore, the squeeze may be due to the platform having locked up the user’s funds for almost a month.
The above chart clearly illustrates the short squeeze being carried out as the prices dropped below $0.4. A notable buying pressure was constantly kept while the bears were left no room to mark their presence. According to the data from Coinglass, massive short positions were liquidated in the past few hours which raised the CEL price beyond $0.65 at the press time.
In the past 12 hours, nearly $906.4K longs were liquidated due to the announcement which was further balanced with $737.89K short liquidations. Major exchanges like FTX, Huobi & Okex witnessed huge short liquidations. On the other hand, FTX aimed to accumulate more CEL tokens in the spot markets and close their positions.
Source: https://coinpedia.org/price-analysis/with-a-gigantic-drop-in-the-cel-price-holders-try-to-recover-with-a-celshortsqueeze/