What Are the Key Differences between a Crypto Death Spiral and a Traditional Market Short Squeeze?

A death spiral is a downward reinforcing cycle driven by fundamental failure or forced selling, leading to price collapse. A short squeeze is an upward reinforcing cycle where a rapid price rise forces short sellers to buy back, fueling the rally.

Crypto death spirals often involve algorithmic failure and forced liquidation in derivatives, while short squeezes are primarily market dynamics.