A long squeeze is a sharp drop caused by over-leveraged longs being liquidated. As price falls into a cluster of long liquidation levels, the forced selling pushes price lower and triggers further long liquidations. It is the mirror image of a short squeeze and is common after periods of greedy, heavily-long positioning.
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FAQ
What is Long squeeze?
A long squeeze is a sharp drop caused by over-leveraged longs being liquidated. As price falls into a cluster of long liquidation levels, the forced selling pushes price lower and triggers further long liquidations. It is the mirror image of a short squeeze and is common after periods of greedy, heavily-long positioning.