Crypto Liquidations: What They Are and Their Impact on the Market
The crypto space is known for its wild swings, and the recent wave of massive liquidations has shaken up traders everywhere. With more than $19 billion in leveraged positions gone in the October 2025 crash alone, it’s vital to grasp how these events unfold. In this post, I’ll break down what crypto liquidations entail, their causes, and their effects on market stability. Plus, I’ll share some practical risk management strategies to help you stay afloat during these chaotic times.
What Are Crypto Liquidations?
At its core, crypto liquidations happen when a trading platform forcibly closes a trader’s leveraged position because they lack enough margin. Generally, this results when the market shifts against a trader’s bet, causing their…
