A long squeeze occurs when investors who have bought a cryptocurrency with the expectation that its price will rise are caught in a sudden downturn. These investors, known as “longs,” hold positions anticipating gains. However, if the price starts to fall sharply, it can trigger panic selling.When the price decreases, many long holders may be forced to close their positions to limit their losses. This selling increases the downward pressure on the price, leading to even more long holders exiting their positions. As a result, the situation can escalate quickly, further driving down the asset’s value.Market volatility, unexpected news, or broader market trends can all contribute to a long squeeze. It highlights the risks of holding positions without proper risk management strategies. Understanding this concept is essential for investors to navigate the ups and downs of the market effectively.