ETH dump mechanics (aka how people compound losses):
1.You enter a TOKEN/ETH market (buy or LP), so you inherit ETH as the base risk.
2.ETH mega dumps.
3.Token USD price gets hit twice: Token/ETH slides and ETH/USD slides.
4.You panic-sell TOKEN into ETH while ETH is still a falling knife, locking in the token loss and concentrating into the dump.
5.Add slippage/fees, and if you were LP’ing you can exit with impermanent loss on top.
Know what you’re long before the candle prints.