Market makers whipsaw, it's never for your little chips.

Having been in the crypto space for ten years, I've seen too many retail investors curse the market makers when prices drop, thinking that the market makers are just targeting their small amount of coins. The truth is: the market makers engaging in Whipsaw are not doing it to seize your chips, but rather to ensure they can pump the price higher and sell more steadily in the future.
Let me tell you about an operation I have seen with my own eyes.
There is a small coin called METIS (an anonymous low-cap coin, not a real duplicate name), with an initial price of 1.2U and a circulation of 10 million pieces, of which retail investors hold 60%. A small team has accumulated 4 million pieces at the bottom, but they are afraid to push it directly. Why?
Because if it is forced to rise, once it reaches 1.5U, early retail investors will sell off, and the team simply cannot hold it, resulting in no one lifting the sedan, leading to self-playing. Therefore, it is 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 began to lose confidence: "Isn't there any hope?" "Let's run, don't let it go to zero." So they started to cut losses, while the market maker quietly accumulated around 0.9.
Stage Two: Rapid Decline and Rebound
The price of the coin suddenly accelerated downwards, dipping to 0.7U before quickly rebounding to 0.95. Many people thought it was the bottom and rushed in to buy the dip. As a result, the market maker once again crashed the price below the previous low, directly dropping to 0.65. All those who bought the dip got buried, their mentality collapsed and they sold at a loss.
Stage Three: Create Panic
In conjunction with FUD news: "The project party withdraws liquidity" "Large holders flee", the coin price plummeted to 0.5U. The market is in despair, retail investors are hopelessly liquidating, while the market maker is accumulating a large amount of assets in this range.
Finally, V-shaped reversal + quick pullback
The market maker quickly raised the coin price back to 1U with a small amount of funds, creating a "golden pit." Those who previously sold at a loss dared not chase, while newcomers had their cost 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 wavering floating chips have been cleared out, making the subsequent upward pressure very light.
The essence of Whipsaw is not to seize your coins, but to change the participants — to wash out the low-cost retail investors and bring in a group of people with higher costs who are less likely to sell off.
So next time you see a sharp drop, don’t just blame the market maker. Once you understand, you’ll know: this is not the end, but rather the market maker's preparation for a rally.
In the past, I used to stumble around in the dark, but now the light is in my hands.
The light is always on, will you follow or not?