An Extremely Bloody Weekend: When the Last 'Old Cannon' Falls Before Dawn

This weekend, the market completed a reshuffle in the most brutal way.

On one side, Trend Research under Yili Hua had a $700 million ETH position on Aave ruthlessly liquidated; on the other side, safe-haven assets entered a frenzy mode, with gold rising to $5000 and silver recovering to $80. This extreme polarization might be the most chilling 'bottom signal' in the market.

As a seasoned player who has gone through several bull and bear cycles, Yili Hua's downfall is lamentable. He did not lose due to a misjudgment of the trend but died from extreme confidence in cyclical lending tools. This on-chain liquidation mechanism is like a heartless slaughterhouse; when volatility suddenly amplifies, the fault tolerance of recursive leverage approaches zero.

This liquidation does not represent the end of the market but rather the extreme release of panic emotions.

When even the most stubborn bulls can no longer hold on and are forced to cut losses in the biting cold of winter, it often means that the shorting momentum has entered the final 'vacuum zone'. At present, the technical indicators have long since lost their effectiveness; this is essentially a maximum sweep targeting liquidity and psychological defenses. When the big players exit, it often serves as a precise 'contrary indicator' in history.

The signals at the macro level are even clearer: Money has not disappeared; it is just fleeing rapidly from risky assets. The violent rebound of gold and silver indicates that global funds are seeking the hardest shields.

Advice for investors:

The cryptocurrency circle has now entered deep waters. Do not attempt to catch falling knives before dawn. Protecting principal is more important than ever—watch less and act more, stay away from leverage. In the face of the on-chain liquidation mechanism of DeFi, no human replenishment speed can surpass the execution of code. One careless move, and it could mean death.