#cryptouni"Liquidation grab" is a term used in trading—especially in crypto—to describe a deliberate price move that targets the liquidation levels of over-leveraged traders (often retail).
Here’s how it works:
Meaning:
A liquidation grab happens when big players (like whales or market makers) intentionally move the price up or down to trigger liquidations of leveraged long or short positions. This creates high volatility, causes forced selling or buying, and allows them to buy cheaper or sell higher.
Example:
Suppose many traders are long (buying with leverage) and have their stop-loss or liquidation level at a certain price (say $50).
A whale dumps a large amount of the asset, pushing the price quickly to $50.
This triggers a cascade of liquidations, dropping the price further.
The whale then buys back at a lower price, making profit from the manipulation.
Why it matters:
It's often seen in low liquidity environments.
It shows the manipulative behavior of large players.
Understanding it helps you avoid getting trapped in fakeouts or forced liquidations.
