In just a few days, VRA surged by +340%, only to lose over -80% of its value in a single hour. Many believe this was a simple "sell-off," but the data suggests something very different:
One of the most brutal forced liquidation events in recent weeks – or perhaps even longer – for a tech project.
What the Data Shows:
Liquidation Maps
On Bybit and OKX, there was a significant stacking of long positions from $0.0028 to $0.0046.
The drop to $0.0023 wiped out all over-leveraged positions with 10x-25x leverage.
The bars show a complete sweep of long degen positions – this wasn't just "profit taking."
Open Interest (OI)
Within a few hours:
OI -80-% ➜ from $32.33M to ~$6.5M
A massive reduction = aggressive deleveraging (not a gradual exit).
Funding Rates
Before the crash: Funding was sky-high (positive).
Should've seen this coming on a chart that was up so much!!!
After the crash: Back to neutral or negative ➜ all the degen longs got wiped out.
Rekt Data
Over $5.8M in liquidations in 24h, of which $5.2M were long positions.
Bybit alone: $3.7M ➜ the main slaughter happened there.
Trade Count & Volume
Bybit: 693,000 trades/day (!)
OKX volume: $85M
=> Retail FOMO with over-leverage led to a complete reset.
Potential Scenarios for the Next Few Days
Scenario 1: Short-term Recovery Bounce (likely)
Long positions have been cleared out.
Low funding.
If organic demand or a new narrative emerges (e.g., listing, news), we might see a rebound to $0.0027-$0.0030.
Needs confirmation volume. Let's not fall for a fake breakout. I'll be watching this closely.
Scenario 2: Temporary Sideways Movement (likely) – Consolidation
The market took a shock, and liquidity is now drained.
Could move sideways between $0.0022-$0.003.
Typically, these phases last hours or days until a new setup forms.
Scenario 3: New Leg Down (less likely in the short term)
If another panic sell-off or BTC dump occurs, we could see a move below $0.0020, where there's still some short liquidation liquidity left.
Would need a broader market trigger or news to drop this low again.
The VRA dump was mechanical, not fundamentally driven. Instead of a sell-off, we saw a forced liquidation of over-leveraged degen long positions.
Strategy Moving Forward:
We're waiting for a reset in funding, OI, and volume to decide if the bounce is real or just a trap.
Technically, the key levels are $0.0027 and $0.0020. In 3 days, the recently unstaked tokens will unlock.
Posted Using INLEO