The overnight flash crash in perpetual contracts for U.S.-listed AI stocks was traced to Binance.
BlockBeats reported on October 18 that Tread.fi CEO DYJ said the sell-off began on Binance: a trader closed a long position worth about $2 million in Sandisk (SNDK). With order book depth relatively thin, other markets then plunged sharply. According to DYJ’s trade timeline, Binance SNDK saw the first large aggressive sell orders, with trading volume of about $407,000 in that second and about $1.03 million in the next. MU also began seeing sell orders in that same second.
DYJ said that sweeping orders then appeared on Hyperliquid. About 10 addresses submitted concentrated IOC sell orders for SNDK, SOXL, DRAM, SKHX, SKHY, and MU within 1.8 seconds. A second wave of synchronized selling followed, and all the orders opened new short positions rather than merely reducing existing ones. In the minute when the first wave of concentrated selling occurred, trading volume for Binance SNDK and MU was about $21.9 million and $5.1 million, respectively; the corresponding figures on Trade.xyz were about $3.1 million and $300,000. On Hyperliquid, MU trading volume then surged to $10.8 million and $9.5 million in the following two minutes. DYJ attributed this phase to cascading liquidations.
Observation 1: With a thin order book, a position close worth about $2 million can trigger a sharp cross-market drop. Observation 2: Concentrated IOC sell orders used to open new short positions send a different signal from simple position reductions. Which do you pay more attention to: order book depth or the concentration of new short positions?
Image 1: Analysis: Flash crash in perpetual contracts for U.S. stock concepts began on Binance, followed by cascading liquidations · Cropped screenshot of the source page
Image source: https://www.theblockbeats.info/flash/372388
BlockBeats reported on October 18 that Tread.fi CEO DYJ said the sell-off began on Binance: a trader closed a long position worth about $2 million in Sandisk (SNDK). With order book depth relatively thin, other markets then plunged sharply. According to DYJ’s trade timeline, Binance SNDK saw the first large aggressive sell orders, with trading volume of about $407,000 in that second and about $1.03 million in the next. MU also began seeing sell orders in that same second.
DYJ said that sweeping orders then appeared on Hyperliquid. About 10 addresses submitted concentrated IOC sell orders for SNDK, SOXL, DRAM, SKHX, SKHY, and MU within 1.8 seconds. A second wave of synchronized selling followed, and all the orders opened new short positions rather than merely reducing existing ones. In the minute when the first wave of concentrated selling occurred, trading volume for Binance SNDK and MU was about $21.9 million and $5.1 million, respectively; the corresponding figures on Trade.xyz were about $3.1 million and $300,000. On Hyperliquid, MU trading volume then surged to $10.8 million and $9.5 million in the following two minutes. DYJ attributed this phase to cascading liquidations.
Observation 1: With a thin order book, a position close worth about $2 million can trigger a sharp cross-market drop. Observation 2: Concentrated IOC sell orders used to open new short positions send a different signal from simple position reductions. Which do you pay more attention to: order book depth or the concentration of new short positions?
Image 1: Analysis: Flash crash in perpetual contracts for U.S. stock concepts began on Binance, followed by cascading liquidations · Cropped screenshot of the source page
Image source: https://www.theblockbeats.info/flash/372388