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Liquidation Cascade
How one drop feeds on itself
systemic shock · mark triggerrounds3liquidated$749Mfund$40M
…
−8% at 20x average → 3 rounds; last ends 80.8, mark 85.7.
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Want the why? The mechanism, in full:
- Ch. 11The Endogenous Reflexivity of Leverage and Liquidation →
- Ch. 12The Political Economy of Insurance Funds →