According to @QCompounding, the combination of multiple cognitive biases—such as social proof, incentives, and denial—can lead to significant market failures, a phenomenon Charlie Munger terms 'Lollapalooza effects' (Source: @QCompounding, May 20, 2025). For crypto traders, understanding these biases is crucial, as similar psychological patterns have contributed to past crypto market bubbles and crashes. Recognizing when groupthink, financial incentives, and denial of risks align can help traders avoid herd-driven losses and identify early signals of unsustainable price movements.