DeFi Liquidations Up 14X in Broad Crypto Sell-Off

[EAA-ALLAH]

Borrowers on decentralized lending platforms are unwinding positions fast, most likely to avoid expensive liquidations as the global cryptocurrency market tumbles Wednesday.
According to decentralized finance (DeFi) wallet provider Debank, liquidations of collateral are up 14X over the most recent bad days on the lending market.
Over the last 24 hours, DeFi platforms have shaken off $662 million in loans, led by the Binance Smart Chain lending application Venus, Aave (versions 1 and 2) and Compound, Debank data shows.
A normal day has liquidations across DeFi products amounting to $1 to $5 million, according to Debank. On May 12, there were $39 million worth of liquidations.
When major cryptocurrencies lose a large amount of value on the spot market, it can cause many corresponding positions, such as bullish bets in the form of derivatives and loans, to unwind rapidly. This can have the effect of lengthening a sell-off and driving the pain deeper, if temporarily.
Highly financialized markets can accelerate downturns., noted Taylor Monahan, founder of wallet provider MyCrypto. source

[Gurujebs]

This liquidation thing is not just defi alone, even the shitcoins and Shiba like investors  weren't out this shoes. The liquidation were massive.
This is one of the reasons I don't like margin trading. The funds that were borrowed may enter into liquidation phase and once you don't have enough funds to keep up the position, you will not only loose the borrowed money but including yours too.