Thanks for the replies... Yes this is what happened (i.e "he used the stop order(market) and due to slippage caused by the fast moving market, his position got closed away from the price he wanted thus that huge loss.")
I assume it must have been a liquidity problem as tvplus006 suggested.... Does this mean it would not have happened if I'd have been trading a bigger coin such as BTC or ETH (due to higher liquidity)? And if that's the case I assume that means Bybit has higher liquidity when trading smaller coins/tokens as this never happened to me when I traded on Bybit? Or, was this just simply 2 very rare occasions when the market dropped alarmingly quickly and I was just extremely unlucky?
Yeah, when the liquidity is thin, that scenario is very likely to happen. This is why I hate trading those brand-new contracts of meme coins and tokens. Before you start trading you have to keep an eye on the order book and trading volume or else you will be fucked. In fact, some exchanges even put warnings right after you open the trading pair stating that trading very volatile assets is very risky. I believe you must have seen such warnings. It's almost equal to gambling.