Crypto Order Book Basics: What It Means When the Market Faces a "Massive Wave of Liquidations
If you track crypto news or scroll through financial social media, you’ve likely seen terrifying headlines like: "Crypto Markets Bleed as $800 Million in Longs Liquidated in 24 Hours." To a beginner, this sounds like a vague, chaotic disaster. But in reality, a mass liquidation event is a highly mechanical process—a mathematical chain reaction that takes place directly inside a cryptocurrency exchange's order book. If you want to understand why crypto prices can suddenly plunge or spike 10% in a matter of minutes, you need to understand how leverage, liquidations, and order books collide.
