The market-stop-loss option is what I thought would happen, rendering as a result option A with results such as those you mention (an additional 2,56% loss from the intended target sell value).
That's why some margin trading exchanges have this market stop-loss to avoid some liquidation on massive flash dump/pump of a particular coin. And additional, as far as I know, the market-stop-loss has much higher fee compare to limit stop-loss, so they have some advantages and disadvantages. If your in any good coin it will always rebound if you are patient enough to wait it out.
Yep, we can't really predict it. As I also experienced last few months, I have this particular coin which I bought and I decided not to put any stop-loss after buying it and look at the price now, I already lost 80% if I will sell it now, so I have no choice but to HOLD it until it will come back to my entry price or above, 4months already 
.For me, the best weapon is patience and discipline. You can't be successful in trading if you're greedy enough to have a transaction even if it is not the right time to trade. You need to have good predictions and technical analysis because it will serve as your guide and hint on when to have a proper transaction. You should not execute your strategies and technique without basis, because it will make you end up being a loser. In order to win, you need to become used to the predictions and understand how market moves. There are people who prefer to hold until the right time and they don't want their money to circulate in the market and it depends on you if you are really confident enough with your decisions.