A recent market has staged a shocking liquidation wave. A well-known trader deposited $250,000 into a contract account and urgently added to an Ethereum long position of 800 ETH. Less than an hour later, as Bitcoin declined, the entire position was ruthlessly liquidated—2,500 ETH vanished in just 45 minutes.

This is not an isolated incident. The trader's ETH long position had previously been floating at a 94% loss, with account funds dropping to $270,000. After this additional purchase, the remaining 2,300 ETH long position's liquidation threshold was hanging at $3,009.

Yesterday's market provided an answer: Bitcoin broke below $88,000, triggering a chain of liquidations across the network. Within 24 hours, the crypto market saw $270 million in liquidations, with over 110,000 traders wiped out. Long positions accounted for $230 million of the liquidations, far exceeding short positions. Market analysis points to a common factor—the sharp cooling of expectations for a Fed rate cut in January—triggering systemic sell-offs.

This case warrants deep reflection for all contract traders:

**Leverage is a magnifying glass, not a harvesting machine.** With 25x leverage, a seemingly minor fluctuation can instantly wipe out huge positions. Small oscillations can turn into deadly blows in an instant.

**Counter-trend rebalancing is the riskiest gamble.** Trying to average down in a downtrend may seem clever, but in reality, it keeps widening the wounds. The market won't change direction just because of your cost basis.

**Respect systemic risk.** No matter how large your account funds are, facing a sudden macro reversal makes everyone vulnerable. Larger capital means bigger liquidation amounts.

When such events occur frequently, what are they warning us? Are they the peak of market panic, or a signal of a trend reversal? Perhaps the most important question is: can your risk management measures protect you during such volatility?