Crypto liquidation refers to the process where a trader's position is forcibly closed when the position suffers heavy losses or funds are insufficient to meet maintenance margin requirements.

When a trader's account balance falls below the required margin level, the exchange or brokerage may initiate liquidation. This means the position will be closed at market price to cover losses and outstanding debt.

The liquidation process is designed to protect traders and exchanges from further losses. By closing positions, it helps ensure traders do not accumulate more debt while allowing exchanges to recover amounts owed. Liquidation may occur automatically or be triggered by a predetermined margin threshold set by the exchange.

Note that crypto liquidation can lead to significant financial losses. Traders should manage risk effectively, monitor margin levels, and use risk management strategies to avoid or reduce the chance of liquidation.

In crypto, "Rekt" is slang describing traders or investors who suffer major losses or financial ruin. It comes from the English word "wrecked" and expresses being wiped out by poor trading decisions or unfavorable market moves. Rekt is similar to liquidation (爆仓) in Chinese; in professional terms, both refer to liquidation.

When someone says they got "Rekt" in crypto, it usually means they suffered huge losses in trading or investing. It is often used humorously or sympathetically for those facing similar losses in the volatile, unpredictable crypto market.