Liquidating Positions: Why Do You Lose Millions in Minutes?

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## The Frightening Truth About LeverageThe cryptocurrency market is gambling without clear rules. In recent weeks, we have seen a massive wave of liquidations wiping billions of dollars from traders&#39; wallets. The question is: **Are you next?**## What really happened?Liquidation of the position simply: The trading platform forcefully closes your position when your funds ( margin ) fall below a certain threshold. If you enter a long position with 10x leverage and the price drops by 10%, **boom** - your account is zero.## Shocking NumbersIn the latest event:- **83,000 to 1.6 million traders** liquidated globally- **Bitcoin Alone**: Liquidation of long positions worth **190-308 million USD**- **Ethereum**: Liquidation of **128-269 million dollars**- Largest individual liquidation: **87 million dollars** in one minute## Why do long positions collapse more?Most retail traders are betting on the rise ( long positions ) with very high leverage. When the correction comes, everyone collapses together like playing cards. It&#39;s a self-reinforcing cycle: liquidation → selling → price drop → more liquidations.## The Role of Aave and DeFiEven in decentralization, liquidation happens automatically. In the recent event, **Aave alone liquidated collateral worth 180 million dollars** without human intervention. The mechanisms operate ruthlessly.## Factors that Ignite the Fuse- **Geopolitical tensions** (trade disputes, political news)- **Macroeconomic Data** (Interest Rates, Inflation)- **Expiration of options** at "Maximum Pain" levels- **Very high activity** in the futures markets## How to protect yourself?**1. Leverage:** Reduce leverage to a maximum of 2x-3x or avoid it completely (.**2. Stop Loss:** Always use a stop-loss, even if it seems awkward.**3. Monitor major news:** Geopolitical tensions and political announcements ignite the markets.**4. Diversify the portfolio:** Don&#39;t put all your money in one center.**5. Stay Alert:** During periods of uncertainty, liquidity disappears and slippage hurts.## The main pointThe cryptocurrency market is real and dangerous. Billions move daily, and algorithms feel no remorse. If you are going to play with leverage, understand the risks fully - or stay away.