Liquidation?

I am very new to crypto and i have just stumble accross this post;

“crypto liquidation almost reached $1 mil, short traders suffer the most damage”

I tried to ask chat gpt and chat explained it to me in a term that makes me more confused;

“Suppose you have $100 and use 10x leverage to open a position worth $1,000. If the market moves in the opposite direction and you lose about 10% of the position ($100), then your entire margin is depleted — and the platform will liquidate the position to prevent further losses.”

What is LEVERAGE? And what is LIQUIDATION? I thought liquidation simply means when a person turn their cryptocurrency into a fiat currency.