Crowded Long vs Long Cascade

A market condition in which an excessive proportion of leveraged participants are positioned long, typically indicated by a long/short ratio above 1.8 and an annualized funding rate above 30%; associated with elevated fragility as the pool of new buyers diminishes.

A rapid price decline driven by the sequential forced liquidation of leveraged long positions; each tier of liquidations generates selling pressure that pushes price lower and triggers the next tier; most severe when open interest is high and a large liquidation cluster exists below current price.