On Bitfinex, one of the main crypto exchanges, the amount of margined Dogecoin short bets hit 15.9 million DOGE, roughly equivalent to $3.4 million.
Short squeezes are characterized by a series of liquidations that induce traders to panic and close their positions, causing the price of a particular asset to rise dramatically.
DOGE/USD 1 Day Price Chart: Source – coinmarketcap.com
Dogecoin has lost more than 80% of its value from its all-time high.
This arose after a Twitter user said that because of its limitless supply, the biggest meme cryptocurrency has seen a significant rise in short interest on the Bitfinex platform.
The user was rebuked by the “Chairman” of Wall Street Bets, who pointed out that the US currency would be worthless as well because its quantity is endless.
While some regard Dogecoin’s inflation as its greatest strength, several industry experts see it as a severe problem. Ripple CEO Brad Garlinghouse has stated, as reported earlier, that he would not touch Dogecoin because of its inflationary characteristics.