Dump
trading · strategy · market manipulation · market psychology
A dump is a rapid wave of selling that pushes an asset's price lower, often driven by panic, profit-taking, or manipulation.
A dump is a sharp sell-off in a cryptocurrency or other asset. It can be caused by negative news, leveraged liquidations, large holders selling, thin liquidity, or a broad market move.
In a pump-and-dump scheme, promoters create artificial excitement, sell into the demand they generated, and leave late buyers with losses. This is most common in illiquid markets where a few orders can move price dramatically.
Dumps can cascade when stop-losses, margin calls, and liquidations trigger additional selling. Order-book depth matters: the same market sell can have a small effect on a liquid pair and a large effect on a thin pair.