Those trading U.S. stocks with leverage in the crypto market got a firsthand lesson today in what “cross-market liquidation” means.
Last night, South Korean chip stocks crashed. The KOSPI plunged 6% in a single day, falling below 6,000 points, while Samsung and Hynix each dropped 8%. The shock waves hit crypto exchanges directly: $803 million in leveraged positions were liquidated across the market in 24 hours, affecting 172,000 people, 86% of them long traders.
And now for the most surreal liquidation leaderboard: after $BTC ($181 million) and $ETH ($178 million), third place didn’t go to $XRP , but to perpetual futures on SanDisk, a U.S. memory-chip company. $19.09 million was liquidated—more than the $18.78 million for $XRP . SK Hynix, Micron, and SOXL, the 3x leveraged semiconductor ETF, all made the list too.
In other words: while U.S. markets were closed, people were using leverage to bet on chip stocks around the clock on crypto exchanges. Then South Koreans started selling, and crypto positions got liquidated first.
Binance accounted for half of all liquidations across the market. The largest single liquidation was a $BTC 965-million-dollar long position, forcibly closed at 81773.
Then came the plot twist: $BTC bounced in a V-shape from below 81000 back to 83000, and short traders got wiped out next. In the following four hours, 79% of the liquidated positions were shorts.
So, are crypto traders speculating on U.S. stocks, or did U.S. stocks just borrow crypto’s infrastructure to open a 24-hour casino? And let’s be clear: whose scythe swings faster?
Last night, South Korean chip stocks crashed. The KOSPI plunged 6% in a single day, falling below 6,000 points, while Samsung and Hynix each dropped 8%. The shock waves hit crypto exchanges directly: $803 million in leveraged positions were liquidated across the market in 24 hours, affecting 172,000 people, 86% of them long traders.
And now for the most surreal liquidation leaderboard: after $BTC ($181 million) and $ETH ($178 million), third place didn’t go to $XRP , but to perpetual futures on SanDisk, a U.S. memory-chip company. $19.09 million was liquidated—more than the $18.78 million for $XRP . SK Hynix, Micron, and SOXL, the 3x leveraged semiconductor ETF, all made the list too.
In other words: while U.S. markets were closed, people were using leverage to bet on chip stocks around the clock on crypto exchanges. Then South Koreans started selling, and crypto positions got liquidated first.
Binance accounted for half of all liquidations across the market. The largest single liquidation was a $BTC 965-million-dollar long position, forcibly closed at 81773.
Then came the plot twist: $BTC bounced in a V-shape from below 81000 back to 83000, and short traders got wiped out next. In the following four hours, 79% of the liquidated positions were shorts.
So, are crypto traders speculating on U.S. stocks, or did U.S. stocks just borrow crypto’s infrastructure to open a 24-hour casino? And let’s be clear: whose scythe swings faster?