Forced covering in the BTS/bitCNY market must be painful

I see these user initiated settlements of thousands of bitCNY happening daily . Shorters that have more than 200% collateral are being forced to cover. This can't be good for liquidity can it? For instance: I'm going to borrow less CNY if I have to do so at higher collateral to be safe from these aggressive settlements.

Here is the most recent: https://cryptofresh.com/b/6325807