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yes it is possible to go to low, and this is determined by suspension geometry.
having the length of the strut / shock body match the spring length (or effective ride height) is critical. if the car is lowered too far, the strut will be losing out on a portion of its available travel, and will be in a constantly compressed state even at static height. this will cause the car to "bottom out" far more often which will upset the car and cause it to lose grip and thus handle worse.
you have to find that balance between low COG and appropriate suspension travel.
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