Yesterday I observed an interesting case in the market that perfectly illustrates how one of the most dangerous manipulations works — an exit pump. This phenomenon is something every trader needs to understand.

It happened with UNFI. Exchanges announced delisting, and most traders immediately shorted — the logic is simple, delisting usually means a drop. But then something strange happened. Within an hour, the price skyrocketed by 480%, and then sharply fell back. A classic exit pump in action.

Here’s how it actually works. First, a group of participants artificially inflates demand by placing large buy orders. The price soars, newcomers see green candles and rush to buy. When the price reaches its peak, those who started earlier begin to sell massively. The result — a sharp decline and huge losses for those who didn’t manage to exit.

I’ve fallen for such manipulations more than once, and each time I learned something new. The main thing I’ve understood is that a pump is not just a game; it’s a serious danger to your account. Especially when it comes to shorts. If you’re trading with leverage, a 500-600% increase can simply liquidate your position.

So, my observations show: always set stop-losses, don’t believe promises of quick profits, and always ask yourself — why is the price rising so fast? If you can’t explain the reason, that’s a red flag. Protect your assets, learn to recognize such manipulations, because the market doesn’t forgive mistakes.