@hear2

Flash crashes in cryptocurrency markets are sudden and sharp price drops that can occur within a short time frame, often driven by high volatility, low liquidity, or large sell orders. These crashes can be triggered by a range of factors, including a whale dumping a large amount of assets, automated trading algorithms reacting to market signals, or negative news creating panic selling. In highly leveraged markets, flash crashes can also cause a cascade of liquidations, exacerbating the price drop. While these events are often temporary, they can instill fear in traders and cause erratic market behavior. Flash crashes highlight the risks of the crypto market's lack of liquidity and the influence of high-frequency trading.

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