What happened in the early morning? Looking at AiCoin's monitoring panel, the total market liquidation scale reached 132 million USD in the past hour.

This number is already frightening enough, but what’s even more ridiculous is the structure—124 million came from long positions, while the short liquidations are only a mere 8.23 million. A quick calculation shows that over 94% of the liquidations fell on the long positions.

Why is this happening? The night market is already thin, and suddenly there is a reversal, leaving leveraged positions unable to react in time. What's worse is that the long positions are too densely packed; after the drop, stop-loss orders and forced liquidation orders trigger in a domino effect. Some are forced to cut losses, while others face direct liquidation, and panic spreads instantly, leading to heavier selling pressure, which naturally pushes volatility to extremes.

Historically, when a single hour's settlement exceeds 100 million, it is often not a signal of the end; rather, it may be the starting point of an emotional market. Leverage acts as a booster when prices rise but turns into a meat grinder when prices fall.

Have you encountered similar pitfalls? Is it time to continue the downward trend or to make a quick fix? Feel free to share your judgment, or talk about how you control position risk.