Delisting contracts has become a new arbitrage narrative—where there’s huge volatility, there’s room for strategy. When Alpaca got delisted, it triggered a massive short squeeze rally. The key here is Binance’s automatic settlement of long and short contracts during the delisting period. With the main players controlling the circulating supply of spot tokens, they can pump the price infinitely while going long. Binance’s automatic settlement during delisting essentially equals risk-free contract closure. During Binance’s delisting liquidation period, I shorted Alpaca on MXC. Sure enough, as soon as the liquidation ended, Alpaca instantly plummeted by 50%. After profiting from the long contracts, the main players dumped their spot holdings without worrying about costs.