The latest move looks like an adjustment in leveraged positions to me.

https://www.tradingview.com/x/IJKOAmme/

It doesn't look that earth shattering to me, though. I saw some people talking about over-extended shorts. To me, it looks like were seeing less leverage overall.

For six months longs have oscillated significantly more than shorts. It's interesting that the number of open shorts basically hasn't changed.

You can see a period where a number of shorts opened quickly before this most recent drop.

https://www.tradingview.com/x/PRJxytpN/

It looks like shorts have basically re-established their equilibrium and that longs are currently looking for opportunities to close.

For short time periods, I think bulls should be a little worried. However, when you zoom out you see that shorts have been paying a lot in fees for several months. At some point, the number of open shorts is going to need to come down. When they do, buy pressure is going to have them selling into a bull market at a substantial premium.