According to the source, Solana (SOL) liquidity has fallen to bear-market territory amid a reported 500M liquidation overhang, signaling thinner order books and higher execution risk in both spot and perpetual markets. According to the source, the overhang reflects concentrated forced-seller risk above key price levels, elevating slippage and wick risk during periods of volatility. According to the source, traders should closely track SOL order book depth, open interest, and funding rates to gauge stress and potential cascade conditions.