Which Type of Liquidation Is More Common on Major Crypto Exchanges?

Hard liquidation (forced, full closure) is still the most common form of liquidation on major crypto exchanges, especially for smaller positions or accounts using high leverage. However, many sophisticated exchanges have implemented 'soft liquidation' measures, often in the form of partial liquidations or automated leverage reduction for large positions, to minimize market impact and reduce the burden on the insurance fund.

For most retail traders, the experience is a full, hard liquidation.