Bitcoin suffered a sharp decline, dropping nearly $4,000 within just 60 minutes as a massive liquidation cascade wiped out over $500 million in leveraged long positions. The sudden price collapse triggered automated selling algorithms, creating what traders call a "liquidation spiral." This kind of flash movement is textbook territory for algorithmic traders and bots—they thrive on the chaos when overleveraged positions unwind this quickly. Market participants watching the charts saw it coming but couldn't react fast enough. Such volatility spikes highlight the risks of over-leveraged trading in crypto markets.