XRP records 721 to 735% liquidation in one hour?😲😲😲

🌟🌟What is liquidation?

In futures trading or margin trading, traders use "leverage" to open positions worth more than their actual capital. For example, with 10x leverage, a trader can control a $1000 position with just $100 of their capital.

If the price of the asset (in this case XRP) moves against the trader's position (i.e., the price falls for long positions or rises for short positions) and the trader's account balance reaches a certain level (called "Maintenance Margin"), the trading market automatically force-closes the trader's position to prevent further losses for the trader and the platform. This process is called "liquidation."

🌟🌟Why did this happen to XRP?🤔🤔

According to recent news, XRP experienced a quiet rise earlier, prompting many traders to open high-leverage buy positions (betting on the continuation of the rise). Then a sudden and sharp reversal in price occurred, dropping rapidly, albeit by a relatively small percentage, but this drop was enough to trigger stop-loss orders and liquidate a massive number of high-leverage positions.

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