leverage stacked on leverage.
Pudgy Penguins has 576 active loans on Blur. That's 2.68x more leverage than BAYC with a 40% lower floor. Liquidations trigger at 7 ETH, just 22% below the current 9 ETH floor. When that breaks, 115+ Pudgys dump at once into a market that trades 50 per day. Moonbirds dropped 48% in 6 hours from 83 liquidations. Pudgy has 6.9x that leverage.
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