A few days ago, the crypto world was in chaos—someone saw Bitcoin plummet from $87,600 straight down to $24,100, and was momentarily terrified. But a few seconds later, it rebounded. What exactly happened?

This incident actually only affected a specific trading pair (BTC/USD₁) on a major exchange; other mainstream trading pairs were not affected at all. The price quickly recovered to around $87,000. So don’t panic, Bitcoin didn’t really crash.

Why did this happen? Essentially, it’s a liquidity issue. Emerging or low-volume stablecoin trading pairs often face an awkward situation—order books are too shallow, market makers are few, and quotes are not dense enough. Imagine if the buy orders are sparse and a large market sell order suddenly hits, it can instantly break through all buy orders, causing a temporary price plunge. Only when new buy orders come in can the gap be filled. This phenomenon is called a "flash candle" in the industry, and it dissipates within seconds.

Spot investors’ holdings were hardly affected, but this event served as a wake-up call for high-leverage traders. The current geopolitical situation is already complex, and market liquidity is fluctuating. High-leverage trading risks are amplified several times. A small fluctuation could be the trigger for liquidation.

The key lesson is: don’t be scared by extreme volatility, and don’t hold onto false hope with leverage. Understanding market mechanics is essential for survival.