How a squeeze happens

  1. Lend

    Holders deposit a coin into its vault and earn rent in SOL while it's borrowed.

  2. Short

    A bear posts SOL collateral at 200%, borrows the coin and sells it into the pool. One transaction.

  3. Pump

    Price rises. The short's health falls. Its liquidation line sits on the squeeze map for everyone to see.

  4. Liquidate

    At 130% health on the 60-second TWAP, anyone can liquidate it. The collateral buys the tokens back, a forced market buy. The caller takes half the penalty. On a thin coin, that buy trips the next short. That's the squeeze.

The numbers

Initial collateral
200%

You put up twice what you borrow.

Liquidation
130% on 60 s TWAP

A single wick doesn't do it. A minute of price does.

Per-coin borrow
≤ 30% of the vault

Lenders always have idle tokens to withdraw.

Position size
pool depth

Each short is sized so a liquidation can buy it back at ≤ 25% slippage.

Rent
5% → 200% → 2,000% APR

Cheap under 60% utilization, steep past 80%. Crowded shorts bleed.

Fees
0.5% open, 0.5% close

To the platform.

Penalty
10% of the position

50% to whoever liquidates, 30% to lenders, 20% to the insurance fund.

Cascade
3+ liquidations in 60 s

What the feed calls a squeeze. What the replay records.

Read this before you put SOL in.

SHORTPAD is in custodial beta. Vaults and collateral sit in wallets our server controls, not in an on-chain program. Shorts really sell into the pool and liquidations really buy back; the custody is the part that isn't trustless yet. The on-chain program that replaces it is in build.

Because of that, the caps are hard: 0.5 SOL per short, 20 SOL borrowed per coin, 100 SOL across the platform.

What can go wrong: a bug or a key compromise on our side could lose what's in the vaults; a spike that outruns liquidation leaves bad debt, paid by the insurance fund first and lenders second. Every vault address, every transaction and every payout is on chain and linked from the page it belongs to. Don't lend or post more than the cap is worth to you.

Short the farm

Every coin page carries our farm scan: shared delegates, one-buy-per-second wallets, dev exit timing. A coin that reads 85% one farm is a bear's setup. Spot the farm. Short the farm.

The line we hold

No SHORTPAD wallet opens shorts to get squeezed or liquidates a setup we made. Replays are on chain. Check them.

Find a squeeze