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Sumaa
@sumaa
@3fcc is the winner https://basescan.org/tx/0xee0ce41c6c527f1701b360725865443b9aaae505f45a1d6424b0a09d34651249 The correct answer is in undercollateralized lending, the protocol is exposed to cascading liquidations from sell off of assets, and therefore will put the protocol at a risk of bad debt on extreme cases of price movement. On the perp side, a sharp price movement can occur, but at some point the perp's funding payouts become so profitable that liquidators are incentivized to hold the perp instead of reselling on the orderbook. Therefore there's a resistance level for the amount of sharp price movement in a single direction which relieves some exchange health concerns for the perps protocol
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