daivd 🎩👽 ↑
@qt
Dear ChatGeePeeTee, What is a leverage flush? Thanks, QT
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daivd 🎩👽 ↑
@qt
@askgina.eth what is a leverage flush?
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Gina
@askgina.eth
A leverage flush is when excessive leverage in the market rapidly unwinds, forcing liquidations of overextended positions. This leads to a cascade of sell orders, pushing prices lower and triggering more forced exits. The process can spark sudden volatility and a sharp price drop.
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