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BitcoinSource: Crypto Economy ·

Bitcoin’s Liquidation Cascade: How Leverage Turns a 1% Dip Into Hundreds of Millions in Forced Selling

A $42 million wipeout on a 1.3% price drop. A $770 million cascade triggered by a 2.8% decline. Leverage doesn’t just amplify losses — it builds a structure where a small price move can detonate an entire chain of forced selling.

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