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theblockcrypto.com/daily/96967/kr probably cascading liquidations + not enough liquidity

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How much liquidity is enough liquidity?

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ya it's a good question. If there's no leverage it matters less: no one is compelled to trade, and so if there isn't "enough" liquidity people can just not sell. But liquidations --> forced selling --> demand for liquidity. I could be wrong! Was the crash driving by liqs?

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and

Can cascading liquidations alone explain why multiple books crashed at the same time? Several things need to happen for a liq crash: skewed trade flow, relatively thin books, market-makers unable or unwilling to react. "Low liquidity" is a necessary cause, but not sufficient

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and

I'm not implying anything nefarious here—I think Kraken & team are trustworthy. I think low liquidity is a cause almost tautologically, but other things have to happen at the same time as well. Some of these other things can conceivably be caused by technical glitches.

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"low" is a relative term. You could say buy/sell demand was significantly imbalanced for a moment. In addition to liquidations you have stop orders that triggered. Because so many markets dumped at the same time, you had a compounding effect of reduced collateral value/equity.