The scale of the wipeout
The number of liquidations in a single day is a blunt measure of market stress. When a trader's margin falls below the required level, the exchange closes the position to prevent further losses. That process, repeated thousands of times, can feed on itself as forced selling pushes prices down further. The 63,222 figure represents a significant chunk of the trading population, and it's a sign that many traders were caught off guard by the market's direction. It's also a reminder that liquidations are a normal part of the crypto cycle, but the sheer volume in one day stands out.
Why leverage is the culprit
High leverage is the common thread. Traders who borrow to amplify their bets are left with little room for error. A small adverse move can wipe out the entire margin, triggering an automatic close. The persistence of high leverage means many positions are sitting on thin ice, and any sharp price
