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I think it has more to do with traders being traders and getting themselves liquidated.

they cant just all liquated at the same time by coincidence and crashing bitcoin's price

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That's actually exactly how that works

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1 sat \ 3 replies \ @ethsh1 OP 1 Oct 2024 -100 sats

did you even ever trade before because it seems like you dont its quite unusual for traders to get themsleves liquidated at once