Lending and borrowing is most afraid of not losing money, but being only “three steps” away from the liquidation line and still pretending to be dead. My usual approach is basically three things: first, cut the position down to a level where I can sleep at night (don’t count on a rebound to save you); either add a bit of margin so the red line is pulled farther away by a small amount, or simply make a partial repayment—better to earn less than to get force-liquidated and used as fuel. In plain terms, the closer you are to the red line, the less you should add leverage to try to bottom-fish; that kind of “bet one more time” is basically handing the option back to the market.

Recently, developers are pretty hyped about modularization and DA-layer narrative development, but when users are completely clueless, emotional swings are more easily amplified, and liquidation “waterfalls” are also more likely to come suddenly. Anyway, when I see a blowout surge, I ask who’s offloading first; when you’re three steps from the red line, you retreat one step ahead. No matter how hard you talk, the money is your own.