We have studied quasi-two-dimensional multiferroic LuFe2O4 with strong charge-spin-lattice coupling, in which low-temperature coercivity approaches an extraordinary value of 9 T in single crystals. The enhancement of the coercivity is connected to the collective freezing of nanoscale pancakelike ferrimagnetic domains with large uniaxial magnetic anisotropy ("Ising pancakes"). Our results suggest that collective freezing in low-dimensional magnets with large uniaxial anisotropy provides an effective mechanism to achieve enhanced coercivity. This observation may help identify novel approaches for synthesis of magnets with enhanced properties.