How do flash loans change liquidation strategies?

[johnblockbuster]

Flash loans allow for instant arbitrage or liquidation of undercollateralized positions. Advanced traders leverage them to extract liquidations without initial capital, but timing and gas fees are critical.

[alex10]

Flash loans have completely reshaped liquidation — allowing instant, risk-free arbitrage and capital efficiency.

[Nahid Hossen]

These tools make markets more dynamic, but also increase the complexity of DeFi risk management.