That trader should have already closed out a portion of their position at the 0.22 level, and then the price rallied directly afterward. To put it bluntly, the position size was simply too heavy. Liquidating everything in one go was simply unrealistic, and as a result, they ended up getting trapped. The recent price movements of PIPPIN and RIVER show exactly this—sometimes having an oversized position becomes a burden instead—you can't respond quickly to changes in market momentum. This is why many experienced traders build positions in batches and close positions in batches; they won't put all their chips on a single time point. Large position management really is an art form, and this 0.22 operation is a textbook case of this lesson playing out in real time.
That trader should have already closed out a portion of their position at the 0.22 level, and then the price rallied directly afterward. To put it bluntly, the position size was simply too heavy. Liquidating everything in one go was simply unrealistic, and as a result, they ended up getting trapped. The recent price movements of PIPPIN and RIVER show exactly this—sometimes having an oversized position becomes a burden instead—you can't respond quickly to changes in market momentum. This is why many experienced traders build positions in batches and close positions in batches; they won't put all their chips on a single time point. Large position management really is an art form, and this 0.22 operation is a textbook case of this lesson playing out in real time.