At 5:22 a.m., a line on the screen plunged straight down. In ten minutes, the system liquidated more than $50 million in positions, over 74% of them bets on prices going up.
Most people were asleep then. Fast asleep. U.S. stocks don’t trade on weekends, but contracts for these assets keep running on-chain. When they reach a place where there’s nobody to take the other side, prices just keep searching lower.
A lot of people assumed a huge short sale had slammed the market. But the first trade was actually a closing trade: a roughly $2 million SanDisk long on Binance was liquidated. In that second, $400,000 in market sells hit; the next second, $1.03 million. The order book was far too thin. Absurdly thin. Prices got shoved down a step, and then came the scene that followed: in 1.8 seconds, ten addresses placed sell orders across six contracts at once. They were all newly opened short positions, not reductions to existing positions. Orders like that shouldn’t show up in a normally quoted market. In the middle of the night, there was nobody to take the other side.
The liquidation list tells the story. $12.73 million in a 3x leveraged long chip fund, $10.85 million in SanDisk, $10.72 million in SK Hynix. Even SOXS, a short ETF, saw $9.07 million liquidated. That’s the strange part: longs and shorts were both getting hit. Whether you got the direction right didn’t matter much here; leverage was being drained away. Micron fell more than 6% intraday, then recovered from $818 to $864. Western Digital was down nearly 7% at one point.
Bitcoin fell by less than $1,000, then bounced back $1,200. Ether dropped from $2,402 to $2,306, then returned to around $2,400. The moves weren’t big. Really, they weren’t. But during those ten minutes, crypto was being dragged around by stock contracts.
There’s something here worth unpacking. That weekend price is really just someone’s guess about where Monday’s opening price will be. The spot market is closed, so there’s nothing to anchor prices; market makers aren’t around either. A single $2 million liquidation order can move the entire leverage chain in seconds, pulling down six contracts that otherwise have nothing to do with one another. This structure grew up in crypto: it runs 24/7, starts at 10x or 20x leverage, and now it’s been repurposed for U.S. stocks. The problems came along with it.
Are you sure the price on your phone is really what the market is offering? On Sunday night, it looks more like private trading between a handful of addresses.
The backdrop isn’t exactly reassuring. It never was. The Nasdaq fell 5.5% last week, semiconductors posted eight straight losing sessions—the longest streak since 2008—and the 10-year Treasury yield broke above 5.1%. Chip stocks were already on edge. This weekend’s shock came along and plucked a tightly stretched wire at exactly the wrong time.
If you’re holding similar contracts, check your margin ratio now. Weekend market depth is only a fraction of what it is on weekdays. With the same position, a drawdown you could normally withstand might not give you that chance on a Sunday night.
The way I see it, the risk with products like these often has nothing to do with getting the direction wrong. It’s that, at the wrong time, you can’t find anyone willing to take the other side. When markets open Monday, prices will re-anchor to the actual spot market. Most of the time, a weekend gap like this gets filled the next day. There’s no point panicking; you can’t rush it. But the positions that were forcibly liquidated won’t come back.
There’s no clear answer on who was behind those ten addresses, or whether they belonged to the same group. And so far, no exchange has published the results of an investigation.
$BTC $ETH $BNB
#比特币 #杠杆 #USStocks
Most people were asleep then. Fast asleep. U.S. stocks don’t trade on weekends, but contracts for these assets keep running on-chain. When they reach a place where there’s nobody to take the other side, prices just keep searching lower.
A lot of people assumed a huge short sale had slammed the market. But the first trade was actually a closing trade: a roughly $2 million SanDisk long on Binance was liquidated. In that second, $400,000 in market sells hit; the next second, $1.03 million. The order book was far too thin. Absurdly thin. Prices got shoved down a step, and then came the scene that followed: in 1.8 seconds, ten addresses placed sell orders across six contracts at once. They were all newly opened short positions, not reductions to existing positions. Orders like that shouldn’t show up in a normally quoted market. In the middle of the night, there was nobody to take the other side.
The liquidation list tells the story. $12.73 million in a 3x leveraged long chip fund, $10.85 million in SanDisk, $10.72 million in SK Hynix. Even SOXS, a short ETF, saw $9.07 million liquidated. That’s the strange part: longs and shorts were both getting hit. Whether you got the direction right didn’t matter much here; leverage was being drained away. Micron fell more than 6% intraday, then recovered from $818 to $864. Western Digital was down nearly 7% at one point.
Bitcoin fell by less than $1,000, then bounced back $1,200. Ether dropped from $2,402 to $2,306, then returned to around $2,400. The moves weren’t big. Really, they weren’t. But during those ten minutes, crypto was being dragged around by stock contracts.
There’s something here worth unpacking. That weekend price is really just someone’s guess about where Monday’s opening price will be. The spot market is closed, so there’s nothing to anchor prices; market makers aren’t around either. A single $2 million liquidation order can move the entire leverage chain in seconds, pulling down six contracts that otherwise have nothing to do with one another. This structure grew up in crypto: it runs 24/7, starts at 10x or 20x leverage, and now it’s been repurposed for U.S. stocks. The problems came along with it.
Are you sure the price on your phone is really what the market is offering? On Sunday night, it looks more like private trading between a handful of addresses.
The backdrop isn’t exactly reassuring. It never was. The Nasdaq fell 5.5% last week, semiconductors posted eight straight losing sessions—the longest streak since 2008—and the 10-year Treasury yield broke above 5.1%. Chip stocks were already on edge. This weekend’s shock came along and plucked a tightly stretched wire at exactly the wrong time.
If you’re holding similar contracts, check your margin ratio now. Weekend market depth is only a fraction of what it is on weekdays. With the same position, a drawdown you could normally withstand might not give you that chance on a Sunday night.
The way I see it, the risk with products like these often has nothing to do with getting the direction wrong. It’s that, at the wrong time, you can’t find anyone willing to take the other side. When markets open Monday, prices will re-anchor to the actual spot market. Most of the time, a weekend gap like this gets filled the next day. There’s no point panicking; you can’t rush it. But the positions that were forcibly liquidated won’t come back.
There’s no clear answer on who was behind those ten addresses, or whether they belonged to the same group. And so far, no exchange has published the results of an investigation.
$BTC $ETH $BNB
#比特币 #杠杆 #USStocks