According to Lookonchain, Hyperliquidity Provider (HLP) experienced a loss of approximately $12 million in the last 24 hours due to a market squeeze. The wallet 0xde95 shorted $JELLY on the HyperliquidX platform and subsequently removed the margin, which led HLP to passively liquidate $4.5 million in short positions. Moreover, a newly created wallet, 0x20e8, opened a long position, further impacting the market dynamics. This incident underscores the risks associated with liquidity provision and short positions during volatile trading periods.

According to Lookonchain, Hyperliquidity Provider (HLP) incurred a loss of approximately $12 million in the last 24 hours due to a market squeeze involving $JELLY on HyperliquidX. The user '0xde95' initiated short positions and withdrew the margin, leading to HLP's passive liquidation of $4.5 million in short positions. Concurrently, a new wallet '0x20e8' opened a long position, influencing the market dynamics significantly.

According to André Dragosch, PhD, if the Federal Reserve decides to ease monetary policy, the market could experience a significant upward squeeze. This suggests a potential bullish response in the cryptocurrency market, particularly for Bitcoin, as investors might anticipate lower interest rates leading to increased liquidity and investment in risk assets.

According to ReetikaTrades, the current market squeeze is not leading to a bearish retest due to actual positive news. The trend is supported by the selling activity of older investors over the past months, who now feel underexposed after reading the recent news, suggesting a potential market reclaim and upward movement.