Why did investors who used Margin method get in trouble?

Investors who used the margin method often faced significant risks, as borrowing money to invest amplifies both potential gains and losses. During market downturns, their losses could exceed their initial investments, leading to margin calls where brokers require additional funds to cover losses. This forced many investors to sell assets at unfavorable prices, exacerbating their financial troubles. Additionally, high volatility in markets can quickly erode the equity in margin accounts, putting investors in precarious positions.