@star87knight
"Leverage liquidation cascades" occur when over-leveraged positions are forcibly closed during sharp price drops, exacerbating volatility. As prices fall, margin calls trigger mass sell-offs, creating a domino effect that crashes prices further—often seen in Bitcoin and altcoin dips. This amplifies downward pressure and erodes market confidence. Investors can mitigate risks by avoiding high leverage, setting stop-loss orders, and maintaining cash reserves to buy during dips. Monitoring liquidation data on platforms like Coinglass helps anticipate these events, offering a buffer against sudden collapses.
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