Short sellers of the Celsius (CRYPTO: CEL) token saw large-scale liquidations as the token surged on Monday.
What Happened: According to data from Benzinga Pro, CEL rallied 100% from $0.78 to an intra-day high of $1.56.
DUDE!!!! The $cel token is undergoing a HUGE short squeeze! pic.twitter.com/FtTqa3PxYF
— Lark Davis (@TheCryptoLark) June 21, 2022
Good morning!
— Jimmy Crypto 🕘 (@JimCrypto9) June 21, 2022
As for #Celsius
At some point we would fill this wick. $CEL
Shorters got REKT
Do not take risks, play strategically.#CelsiusShortSqueeze #CelsiusNetwork #CryptoNews #Crypto #altcoins #cryptocurrency pic.twitter.com/bVnJ8ElHZe
The massive rally was largely orchestrated by the community of CEL token holders attempting what market participants equated to a GameStop Corp. (NYSE:GME) type of short squeeze.
The Big #CELShortSqueeze Explained:
— Celsians (@CelsiansNetwork) June 19, 2022
1. Buy CEL on FTX.
2. Move tokens to MetaMask.
3. Connect to 1inch and set sell limit order at $100.
4. RT. pic.twitter.com/okG0tTvumZ
The community planned to buy CEL on the FTX crypto exchange, move tokens to decentralized exchanges through MetaMask, and then set sell limit orders at the $100 price level.
CEL is the native token of the lending platform Celsius, which is currently in the midst of a liquidity crisis. The CEL token went into freefall shortly after the news spread.
“The biggest problem Celsius have currently seems to be their $1.5 billion position in stETH - 1 stETH is a claim on 1 ETH locked on the Beacon chain,” said GlobalBlock analyst Marcus Sotiriou in a note seen by Benzinga.
“At the moment, stETH is trading at a discount of more than 5% to ETH, which raises concerns that if clients try to redeem positions, Celsius will run out of liquid funds to pay them back.”
See Also: HOW TO SHORT BITCOIN
Price Action: According to data from Benzinga Pro, Bitcoin (CRYPTO: BTC) was trading at $21,133 at press time, gaining 1.9% over the last 24 hours. Ethereum (CRYPTO: ETH) was trading at $1,148, up 1.58% over the same period.
