Home » Altcoin Celsius (CEL) price gains 600%+, but analysts cite exchange error and a massive short squeeze Altcoin Reading 3 min Views 1 CEL price abruptly rallied 600%+ on June 14, but analysts say it’s likely due to an exchange glitch or a liquidation of short traders. On June 14, discussions of Celsius continued to populate media headlines and June 14’s news involved the platform’s CEL token accruing massive gains after what appears to have been either an exchange glitch or a short-squeeze. CEL price spiked from $0.18 to $1.55 in one abrupt candle before sinking back to $0.60 within the same one-hour candle. CEL/USDT 1-day chart. Source: TradingView Currently, analysts are on the fence about the reason for the explosive price breakout. Some cite Celsius repaying a portion of its debts as a reason, while others pinpoint a possible error on the FTX exchange as the reason for what appears to be a short squeeze. Are debt repayments boosting investor confidence? Celsius has been scrambling to cover a number of its debts and it is possible that some investors view this as a sign that the platform will be able to survive the current mayhem. DAI arriving. Celsius finally going to start paying back the debt after buying enough time by reupping collateral to lower liq? pic.twitter.com/z6y165fzlL — Hsaka (@HsakaTrades) June 14, 2022 Twitter analyst Hsaka said that on-chain data shows that the $28 million in Dai (DAI) that was recently deposited into a wallet controlled by Celsius and has since been sent to a separate address, which he identified as a debt repayment address. Celsius wallet transactions. Source: Twitter Analysts believe that the Celsius’s strategy is to lower its liquidation price in the MakerDAO vaults where it holds funds and ultimately avoid insolvency. User interface problems on FTX While the beginning of debt repayment might have helped inspire more confidence in Celsius, several crypto traders reported issues when trying to buy and sell the token on FTX exchange. Several replies to the tweet above confirmed user difficulties when trying to sell CEL on FTX, and Twitter user Karl Larsen said that they “could only fill my shorts at 0.87–0.95.” The possibility that the difficulties with the user interface on FTX played a part in CEL’s rapid spike was also noted by analytics provider TheKingFisher, who posted the following chart highlighting when the user interface went down in relation to when CEL price pumped. CEL/USD price. Source: Twitter According to TheKingfisher, when the UX went down, “most traders [were] unable to hedge, close [or] reduce their positions.” The firm said, Bigger play was to liquidate $CEL shorts on perps. Funding was super high, over 2500% annualized, meaning lot of people were short. Prices didn't move much on the perps, meaning there weren't natural buys, but liquidations mostly as the mark price went up pic.twitter.com/GCeJNma6IF — Saleem Lala (@saleemlala) June 14, 2022 It remains to be seen what happens with the price of CEL moving forward, and it seems the most likely culprit was a cascading liquidation because these types of events are relatively frequent during strong market volatility. For example, Chain (XCN) token underwent a similar event on June 14 as its price dropped 95% due to cascading liquidations. The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.