3% Token Swing Triggers $36M Ethereum DeFi Liquidations

The outsized damage from a modest 3% move underscores how tightly wound leverage remains in Ethereum DeFi, where collateral and debt are often the same volatile assets. That reflexivity cuts both ways: it amplifies routine swings into forced selling, but it also means liquidations can clear excess leverage quickly without a broader trend change. The open question is whether this episode reflects isolated thin liquidity or a structural feature of current positioning.