**How My Loss Became Someone Else’s Ideal Entry Point**
The first time I got liquidated, I chalked it up to bad luck. The second time, I blamed myself. But when it kept happening—watching the price shoot up just after my position got wiped—I started to wonder what was really going on. That’s when I discovered the concept of cascading liquidations.
In the world of leveraged futures, every position has a set liquidation price. If the market hits that level, the exchange automatically closes the position—usually by selling it into the market. Here's where it gets tricky: when lots of traders are stacked around the same price levels, one liquidation can trigger another... and another. It creates a chain reaction of forced selling, crashing the price—not because market sentiment shifted, but because the system is clearing out over-leveraged positions.
The big players and exchanges know this well. They can see liquidation zones on heatmaps, showing where most traders are vulnerable. A small price nudge toward those zones can start the cascade. The result? A fake-out dump followed by smart money scooping up the dip they caused.
So in the end, I didn’t just lose a position—I helped fund someone else’s perfect entry. In this game, your loss isn’t just misfortune—it’s liquidity for the ones who know how to use it.