A market event characterized by a significant increase in trading volume and a rapid price movement, often driven by the forced liquidation of positions.
A liquidity event in financial markets refers to a period where there is a substantial and rapid influx or outflow of assets, leading to significant price volatility. This can be triggered by large-scale buy or sell orders, often from institutional investors or due to margin calls, causing a rapid depletion or accumulation of available trading capital for specific assets.