In crypto futures, leverage lets you control a larger position than your cash. The cash you post is margin. If the market moves against you far enough that your margin cannot cover the loss, the exchange liquidates — it forcibly closes the position so the house is not left holding your debt. A ten-times long can be wiped by a move of roughly ten percent (often less, once fees and maintenance margin bite).
When many traders sit on the same side, one flush becomes a cascade: forced sells push price further, which triggers more liquidations. That is a long squeeze on the way down, or a short squeeze on the way up. Dashboards track the volume because it marks volatility spikes — not because it is a free money signal.
Survive it by using modest leverage, placing stops before the liquidation price, and never depositing “rescue margin” into someone else’s account. Brokers that celebrate 100× while hiding the liquidation formula are selling lottery tickets.
If this pattern matches something you’ve been offered, start at Get help. If someone is already pitching “recovery”, read Fake recovery before you pay another fee.
This article is for general information only. It is not legal or financial advice. Details change. If you have lost money, contact your bank or card issuer and use the routes on the help pages.