Liquidation cascade is a specific Trading coordinate in the Bitcoin knowledge graph. In practical terms, it identifies the subject described here: Forced closures that move price into further liquidation levels, creating a feedback loop. This definition is narrower than promotional usage and should be read together with the implementation, date and evidence attached to the entry.
Liquidation cascade is best understood as part of a system rather than as an isolated definition. Its related coordinates show the mechanisms, incentives and historical records that give the term practical meaning.
Liquidation cascade describes how participants value, trade or obtain exposure to bitcoin. Market behavior can affect adoption and mining economics, but it does not rewrite consensus rules. Price evidence and protocol evidence answer different questions.
Understanding Liquidation cascade helps distinguish a verifiable Bitcoin mechanism or historical record from slogans, products and market narratives.
Primary or authoritative records make these details checkable: a liquidation cascade occurs when price movement triggers forced position closures whose market impact moves price further, activating additional margin breaches in a feedback loop across leveraged venues. They should be verified before using the coordinate in analysis.
The practical limit is: a sharp move or large liquidation estimate does not by itself prove a cascade; proprietary venue data, double counting, mark prices, correlated spot flow and reporting gaps complicate causal attribution. A definition, office, chart pattern or published claim is not by itself a prediction or Bitcoin consensus rule.
For the clearest picture, read this entry together with Forced liquidation, Open interest, Long squeeze, Short squeeze, Leverage, Market impact. The reverse links also lead from Forced liquidation, Short squeeze, Long squeeze.