The Liquidation Cascade strategy targets a specific market microstructure phenomenon: when a price drop triggers margin calls and forced liquidations, the resulting sell pressure can trigger further liquidations in a chain reaction. Once this cascade exhausts, the artificially depressed price tends to bounce. The strategy monitors for liquidation volume spikes combined with sharp drops in open interest (OI) — together indicating that leveraged positions are being forcefully closed. After the cascade subsides (measured by declining liquidation velocity), it enters a long bounce trade. Over 205 trades, the strategy achieved only a 35.1% win rate and lost $1,300. The primary failure modes were: "stop too tight" (73 trades) — the bounce attempt was genuine but the stop loss was hit by continued volatility; "adverse move" (21) — the cascade wasn't actually over and more selling followed; and "low volatility chop" (19) — the cascade signal was a false positive. The concept has merit, but the implementation needs refinement. Key challenges: accurately determining when a cascade has ended (rather than simply paused), setting appropriate stop-loss levels for the high-volatility environment post-cascade, and differentiating between cascades that bounce and cascades that mark the beginning of a larger downturn.