Bybit liquidation breakdown: critical error in margin management, excessive leverage, insufficient diversification. BTC dropped 33% (Jan 14 – Feb 6), $2.5B in liquidations, 267k+ traders affected. Why conservative BingX setup survived while aggressive Bybit failed. Technical analysis of cascading liquidation mechanics, recovery plan, and recalibration strategy. For traders currently in drawdown or wanting to avoid similar situations.
