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But remember, somebody else bought it.

Actually, in this case he had to buy it. When short positions get liquidated, they become forced buyers, because they have to give the same amount of Bitcoin back to whomever they borrowed it from.

It's long positions that someone else bought the Bitcoin the levered long individual was forced to sell.

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Discussion

Javier 7mo ago

That's only partially true on non-derivatives.

And if it is not a derivative, you may consider he is forced to buy, but also to sell immediately and he gets fiat, and somebody else doing a long bought the full liquidated quantity.