I've been keeping an eye on the liquidation leaderboard lately and noticed something interesting—the same level of volatility is causing much more severe liquidations for longs than for shorts.

What does this mean? It suggests that a lot of short-term speculators have piled into long positions, which is why we've seen some sharp drops in the market recently—these moves are basically targeting those who chased the rally. But compared to the wave on October 11, the current number of long liquidations is much lower; most of the weak hands have already been shaken out, and after some time has passed, the longs have pretty much been cleared out—mainly because there wasn't much volume left to begin with.

As for the shorts, from a mid-term perspective... the real show is just getting started.