ETH is also experiencing a short squeeze pump, with a large number of short orders being liquidated around 4000. Why not refer to the soybean meal incident in 2012?

In 2012, North America experienced a once-in-a-century drought, severely affecting the main soybean-producing areas in the United States. The United States Department of Agriculture (USDA) continuously lowered its soybean yield expectations, from 43.9 bushels per acre in May to 35.3 bushels per acre in September, as the market speculated on the spread of a "global soybean supply crisis."

The price of American soybeans is correlated with soybean meal by over 90%, and international capital is heavily long on the CBOT market. The main long players are linked with international capital, using their financial advantages to continuously push up prices.

The concentration of soybean meal positions is high, with the top 20 holdings accounting for 30%, providing space for a short squeeze. ( Note: Currently, the top 5 ETH positions are all short orders, which is almost identical to the short squeeze situation from back then; it's just a repetition of history ).

1. The long and short game escalates (June-July 2012)
-Bullish layout: Main funds leverage drought speculation to push the soybean meal 1301 contract from 3000 yuan/ton to 3945 yuan/ton, with bullish positions exceeding 130,000 lots.
-Short Dilemma: There are only 50,000 short orders, and retail investors are heavily shorting around 3500 yuan, being forced to add margin or even mortgage their properties, but the price continues to soar. ( doesn't this sound familiar to the current situation with ETH, where some people are continuously increasing their short positions? )
2. Market violence short squeeze (August-September 2012)
- Capital-driven: Bulls are driving the rise with massive buy orders (daily trading volume exceeding 430 billion), and the market is beginning to detach from fundamentals, devolving into pure capital speculation.
3. Tragedy Erupts and Market Crash (September 30, 2012)
- Violent incident: Wang Decai and Zhang某 incurred huge debts due to liquidation, carrying explosives, resulting in 7 deaths and 13 serious injuries, becoming the most tragic event in financial history.
- Price collapse: After the event, USDA raised soybean yield expectations, causing a sharp drop in soybean prices and a continuous plunge in soybean meal, with bulls fleeing the scene.