Lighter (LIT) may face short squeeze as 6 million tokens near liquidation

Lighter (LIT) could enter a short squeeze, a rapid rise that forces short sellers to close positions, according to former Ethereum core developer and angel investor Eric Conner. He said up to 6 million LIT in short liquidations is concentrated between $3.43 and $4.10, representing 2.5% of the token’s circulating supply. Odaily reported that LIT was trading at $3.66, within the identified range. More broadly, Kendrick said the rally has been driven mainly by short liquidations, while relatively low open interest, the total value of outstanding derivatives contracts, could leave room for additional investors to reenter as prices rise, ChainCatcher reported.

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