💥 What is an Open Interest Flush in Crypto?
If you’re trading crypto, you’ve probably heard the term “Open Interest Flush”—but what does it really mean?
🔹 Open Interest (OI) Basics:
OI is the total number of active futures or perpetual contracts in the market.
Rising OI usually signals more traders entering positions, while falling OI can indicate exits or panic selling.
🔹 What is an Open Interest Flush?
It happens when a large number of positions are suddenly closed, often after a spike in leverage.
The result? OI drops sharply and the market can move violently in one direction.
It’s usually triggered by stop-loss hunting or margin calls, clearing weak hands from the market.
⚡ Why It Matters:
Traders can use it to spot trend reversals or catch explosive moves.
After a flush, the market often rebounds or continues its trend with stronger conviction.
💡 Pro Tip:
Always watch price + OI together—a sudden OI drop with big price moves is a red flag (or opportunity) for a potential squeeze or liquidation cascade.
