Most liquidation flushes don't start with the 50x accounts, they start with traders who were only 8x and assumed they had enough room.
You've been there. Tape looks clean, you add size on $SUI or $ARB because everything is ripping, then one wick takes the whole bag and you're staring at a zero, realizing the cascade started two clusters above you.
When Fear and Greed is sitting at 68, open interest builds in the background while funding stays positive and almost everyone is piled on the same side. Liquidation engines do not care about your thesis. They care about the next tick. Forced selling from one pocket of longs hits a thin book, which trips the next pocket, and a normal pullback turns into a chain reaction in minutes.
I've been watching the same pattern on $ETH . Bears get squeezed, late longs chase that move, then they get flushed on the retrace. On USDT-margined perps your liquidation price is not a warning light. If the book is empty below you, there is no time to add margin. You are just closed.
Anyone else watching how fast these cascades form when the crowd is this greedy?
#CryptoLiquidations #EtherRalliesAsBearishBetsLiquidate
You've been there. Tape looks clean, you add size on $SUI or $ARB because everything is ripping, then one wick takes the whole bag and you're staring at a zero, realizing the cascade started two clusters above you.
When Fear and Greed is sitting at 68, open interest builds in the background while funding stays positive and almost everyone is piled on the same side. Liquidation engines do not care about your thesis. They care about the next tick. Forced selling from one pocket of longs hits a thin book, which trips the next pocket, and a normal pullback turns into a chain reaction in minutes.
I've been watching the same pattern on $ETH . Bears get squeezed, late longs chase that move, then they get flushed on the retrace. On USDT-margined perps your liquidation price is not a warning light. If the book is empty below you, there is no time to add margin. You are just closed.
Anyone else watching how fast these cascades form when the crowd is this greedy?
#CryptoLiquidations #EtherRalliesAsBearishBetsLiquidate
