When a leveraged lending position is only three steps away from the liquidation line, my first reaction isn’t “just keep on hard-fighting,” but to make the retreat plan clear first: either add margin to pull the line back by a big distance (not that kind of comforting self-deception where it’s only widened by 0.5%), or cut the position directly—slice off the most dangerous leverage first. Plainly speaking, liquidation isn’t about losing money; it’s about pinning you to the ground, grinding you down, and leaving you no room to regret it.

Recently, some people have also been staring at big on-chain transfers and unusual movements between exchange hot and cold wallets, shouting that “smart money is here / it’s about to get wrecked.” After seeing too much of this, I really… at most treat it like an emotional temperature gauge—don’t take it as your risk-control system. The closer you get to the red line, the fewer stories you should spin; first shrink your position until you can sleep at night. After all, the market won’t feel sorry for you.