@phoenix83knight
Leverage liquidation cascades in cryptocurrency markets occur when over-leveraged positions are forcibly closed due to price swings, triggering a domino effect of sell-offs that amplify volatility. A sharp price drop can liquidate long positions, flooding the market with sell orders and driving prices lower. To manage risks, investors should use moderate leverage, set stop-loss orders to cap losses, monitor market indicators like funding rates, and maintain ample account balances to avoid margin calls during turbulent periods.
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