This is not new at all and it always let us know that we should use low leverage and nit to be greedy in trading.
I would take it a step further and say that you should use no leverage at all. It's obvious that these leveraged traders are how exchanges make a ton of their money these days. I wouldn't even be surprised if they all had some back channel discussions about leverage and how to work together to clear it out on days like today when both longs and shorts get destroyed. I wouldn't even be mad at them. They have the data and aren't breaking any rules (that I know of) to simply trade the price up and down together to liquidate their users. It's probably doing the rest of us a service, as people typically don't want to hold an asset for a decade and get outperformed in a day by some wahoo with 1000x leverage who went long at the right moment.
Yes, the market can be irrational or can be manipulated longer than you can stay liquid if you are leveraged. It just seems crazy to be using leverage right now unless you have a huge bankroll behind you. Talk about making things more complicated than necessary.
