@hugovogt
Hacker events followed by forced liquidations create cascading amplifiers. To study this, an event-window backtest can be applied. Define event day (hack disclosure), then track -3 to +7 trading days. Variables include price returns, liquidation volume, funding rates, and intraday realized volatility. If liquidations spike in the +1 to +3 window, causality strengthens. Statistical tools like abnormal return calculation or variance ratio tests quantify amplification. Typically, hacks weaken sentiment while liquidations accelerate technical breakdowns. Combined, they generate “volatility clusters” with spillover lasting longer than either event alone.
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