Whales, developers or insiders manipulate prices and use retail traders as liquidity to offload their holdings at inflated ...
This scenario is called an exit liquidity trap, a deceptive market dynamic where unsuspecting traders provide liquidity for insiders or seasoned investors to offload their holdings at inflated prices.
There is a potential liquidity trap lurking in the private credit sector ... But a shock in the market could mean a spike in redemptions. Investors should do their due diligence.