When price action breaks below key support levels, it often triggers something traders fear most—a liquidation cascade. Here's what unfolded recently:

Over the past 24 hours, approximately $75k worth of STBL got liquidated in one go. The kicker? That represented 100% of the collateral backing that position. With collateral wiped out, forced selling kicked in hard, and that selling pressure didn't stop there. Instead, it sparked a second wave downward, pushing the decline to an additional 80%.

This is a textbook example of how interconnected leverage and collateral mechanisms can amplify losses. One liquidation doesn't always end alone—it can set off a domino effect that impacts the broader market structure.