Liquidation Cascade
A domino effect: liquidations push price, triggering more liquidations. It is a sharp, self-feeding move.
As price falls, liquidated longs are market-sold by force. That supply pushes price lower, liquidating the next tier of positions. In rallies, liquidated shorts are force-bought, propelling price up (short squeeze). Cascades explain why crypto can move ±10% in an hour with no news. On a liquidation feed a cascade looks like a rapid streak of large one-sided entries.
In plain words
One liquidation topples the next like dominoes. That is why crypto drops and rallies can be so violent. It is not people panicking but machines force-closing positions.
Example
BTC dips 2%, triggering 50x-leveraged long liquidations; the forced selling pushes price another 3%, liquidating 20x positions… Within an hour the market is down 8% and the feed shows dozens of red entries.
Also known as: kaskada likwidacji, liquidation cascade, cascade, каскад ліквідацій