Long Cascade vs Open Interest

A rapid price decline driven by the sequential forced liquidation of leveraged long positions; each tier of liquidations generates selling pressure that pushes price lower and triggers the next tier; most severe when open interest is high and a large liquidation cluster exists below current price.

The total number of outstanding derivative contracts that have not been settled or closed; a measure of committed capital rather than direction; rising OI indicates new money entering; falling OI indicates positions being closed.