The crypto market just delivered a harsh reminder to those chasing crowded positions. When too many traders pile into the same trade, liquidity evaporates the moment sentiment shifts—and that's exactly what we're seeing now.

The problem? Crowded trades work great in trending markets with strong conviction. But the second momentum falters or key support breaks, everyone heads for the exit simultaneously. Slippage spikes, prices cascade, and retail traders holding oversized positions get liquidated.

What's changed is market forgiveness. Volatility is picking up, and there's less patience for weak hands. Positions that would've held last quarter are now bleeding out. The real money is rotating away from obvious setups, leaving newcomers holding the bag.

The lesson: In this market environment, unconventional positions often outperform crowded ones. Size down, diversify, and stop following the herd.