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The top 500 cryptocurrencies face the largest bearish liquidation wave of the year
【Crypto World】The cryptocurrency market has recently experienced another wave of intense volatility. Data shows that the top 500 mainstream projects have collectively undergone the largest short squeeze since October 10.
The scale of this liquidation event is astonishing. A large number of short positions were forcibly liquidated in a short period, causing many traders’ leveraged positions to vanish instantly. Market sentiment was once plunged into panic, with selling pressure emerging everywhere.
From a technical perspective, this wave of liquidation broke through some previously established support levels. The waterfall decline in prices triggered a chain reaction—a leveraged liquidation led to more liquidations, creating a vicious cycle. Investors with inadequate risk management became the main victims.
For observing investors, this reflects the high volatility characteristic of the current market. Even leading cryptocurrencies are prone to significant price jumps in extreme conditions. This reminds us that when engaging in leveraged trading, we must be more cautious, and risk management should always come first.