Pepe (PEPE), a widely used memcoin, saw a 36% decline in value over the previous seven days. Many long positions in the coin on the derivatives market were liquidated as a result of this.
When a trader's position is forcibly closed by the exchange to avoid additional losses, this is called a liquidation. A precipitous decline in price prompts the selling of long positions. If this happens, traders who were banking on price increases will have no choice but to sell their holdings.
