Liquidation Cascades: How They Trigger Crypto Crashes
The market was humming along nicely on May 9, 2022, until it wasn’t. Within hours, Terra’s LUNA token lost 99% of its value. But the real story wasn’t just the collapse—it was the...
Source: BitCoinTalk
The market was humming along nicely on May 9, 2022, until it wasn’t. Within hours, Terra’s LUNA token lost 99% of its value. But the real story wasn’t just the collapse—it was the chain reaction that followed. As leveraged traders scrambled to cover positions, their failures triggered more failures, dragging Bitcoin down 15% and wiping…