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The $CEL Bankruptcy News Short

The $CEL Bankruptcy News Short
Photo by Melinda Gimpel / Unsplash

At 23:04 UTC 13/07/2022, It was announced Celsius was going to file for bankruptcy imminently. $CEL, the token for celsius, immediately fell 15% in 2 minutes. This makes sense.

At this point, you needed to make a decision on whether it will continue to go up or down. Here are the possible scenarios I thought of at that moment.

  1. $CEL goes up as there is little follow up news
  2. $CEL goes up as over eager shorts gets squeezed
  3. $CEL goes down as bankruptcy annoucned
  4. $CEL goes down as more shorts pile on and it the token more worthless

Since crypto is super inefficient and it pays to be a 0 iq market participant, I thought 4 was most likely and that was what happened.

Initial 15% move down followed by a 50% crash.

It's crazy how you had one entire hour to position yourself after the initial announcement that they were going to file for bankruptcy imminently. While I didn't short the news due to the timing of the news or catch the bottom long, I managed to capture some of that move up due to shorts getting squeezed.