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waaaayyyy tooooo manny highly leveraged trades lopsided in one direction, a LOT OF MONEY JUST SITTING THERE WAITING FOR A VERY POWERFUL AND WEALTHY GROUP OF TRADERS TO TAKE A NICE BIG CHOMP AND MAKE SURE "THE MARKETS" ARE CORRECTED >>>>> you can think of it as a massive reset button just got hit...and in 6 short hours the largest pile of leveraged accounts ever in the history of crypto just got transferred from one account to another. this is common ....some people call it black swan...but that's not accurate. this kind of market resets, corrections, consolidations...they actually happen quite often...and it's almost always a condition where exchanges are holding massive leverage accounts in only one direction. if you understand the reason that market makers exists....then you understand why having a massive number of leveraged positions in one direction only is not in the interests of any market maker. they hold these positions but it also drives the markets to make these manipulations in order to maintain order and not play the black death game of fate by attempting to honor all of those open long leverage positions. who would be selling to pay all of those long margin trades? the exchanges would need so much more money in reserves to pay off those accounts. And that would make exchanges like coinbase illiquid and incapable of continuing as a market maker,,,so they open up the back doors and allow short selling, make quite a bit of money, and survive one more day that could have literally been the start of a very bad set of days if coinbase tried and failed to pay out those hundreds of billions in leveraged trades. Coinbase and every other exchange took this action because it was impossible to figure out a way that would not blow up crypto.
CHOMP CHOMP. There guess the wall.