A recent market squeeze just triggered a massive short liquidation cascade across the crypto market. Looking at the top 500 cryptocurrencies, this turned out to be the biggest liquidation wave we've seen since mid-October. The situation developed when traders got too crowded on one side of their positions—excessive leverage concentration in overlapping trades. Then came the correction, and the market punished that overcrowding hard. Those packed positioning strategies unwound rapidly, forcing liquidations in a domino effect. It's a stark reminder that even among major coins, market structure can shift violently when leverage gets too dense in one direction.