Herein lies one of the major problems in the crypto market. Not that leveraging isn't a major issue in the stock market also.
I've said several times over the past year that these sudden big drops we see are the whales liquidating the foolish, over leveraged longs. If you want to gamble big then be prepared to lose big. Period.
https://www.cnbc.com/2021/05/25/bitcoin-crashes-driven-by-big-margin-bets-new-crypto-banking.html
Again it's not just crytpos, the entire global economy is over leveraged. The current derivatives market is over 600 Trillion dollars. Think about that. That is not going to end well for anyone but the ultra rich.