📰 Why Did AI Stock Traders Lose $52M While Wall Street Was Closed? Just How Dangerous Is This Night-Market Effect?
We talked about this just two days ago, and now there’s a new development. Wall Street plunged 4.5% on Friday, with the Fear and Greed Index hitting a low of 18. But when markets closed on Saturday, the crypto market played out a tragedy: leveraged perpetual contracts on AI and chip stocks were liquidated for $52M in just 10 minutes, with $38M wiped out from people betting prices would rise. It’s like everyone has left the cinema after the show, but a thief is still at the door snatching tickets from the last few moviegoers—the frenzy is far beyond normal.
Why is this market crazier than Wall Street? On the surface, it looks like a blowup in AI-related bets, but in reality, it reflects the 24-hour squeeze of perpetual contracts: when exchanges close for the day, your infinitely leveraged positions are still burning in hell. Compared with traditional stocks, this mechanism amplifies emotional extremes. Historical data shows that the last time a similar disorderly time-gap trade happened was in 2022, when decentralized exchanges were just taking off—and losses amounted to a mere $5M. This time, $52M shows that the frenzy around AI stocks is far beyond the euphoria on the first day of Bitcoin’s mainnet launch.
What does this mean for BTC and ETH? In the short term, it’s a sentiment shock; over the long term, it’s a regulatory signal. Regulators may turn their attention to this “markets closed, positions still open” perpetual-contract model. Will this loophole in traditional markets be closed, just as crypto markets operate 24/7 with perpetual contracts? This could mean tighter restrictions on leveraged trading in the future. At a deeper level, the $38M in losing bets came from early investors who saw AI as their future. Their losses may directly reflect growing doubts on Wall Street about the AI bubble.
$BTC $ETH #BTC #ETH
This article is not sponsored by any project, and the author does not hold any of the assets mentioned.
⚠️ This is not investment advice. Predictions are for reference only.
#BlackMondayFearsGripWallStreetasTradersLose$52MilliononAIStockBets
We talked about this just two days ago, and now there’s a new development. Wall Street plunged 4.5% on Friday, with the Fear and Greed Index hitting a low of 18. But when markets closed on Saturday, the crypto market played out a tragedy: leveraged perpetual contracts on AI and chip stocks were liquidated for $52M in just 10 minutes, with $38M wiped out from people betting prices would rise. It’s like everyone has left the cinema after the show, but a thief is still at the door snatching tickets from the last few moviegoers—the frenzy is far beyond normal.
Why is this market crazier than Wall Street? On the surface, it looks like a blowup in AI-related bets, but in reality, it reflects the 24-hour squeeze of perpetual contracts: when exchanges close for the day, your infinitely leveraged positions are still burning in hell. Compared with traditional stocks, this mechanism amplifies emotional extremes. Historical data shows that the last time a similar disorderly time-gap trade happened was in 2022, when decentralized exchanges were just taking off—and losses amounted to a mere $5M. This time, $52M shows that the frenzy around AI stocks is far beyond the euphoria on the first day of Bitcoin’s mainnet launch.
What does this mean for BTC and ETH? In the short term, it’s a sentiment shock; over the long term, it’s a regulatory signal. Regulators may turn their attention to this “markets closed, positions still open” perpetual-contract model. Will this loophole in traditional markets be closed, just as crypto markets operate 24/7 with perpetual contracts? This could mean tighter restrictions on leveraged trading in the future. At a deeper level, the $38M in losing bets came from early investors who saw AI as their future. Their losses may directly reflect growing doubts on Wall Street about the AI bubble.
$BTC $ETH #BTC #ETH
This article is not sponsored by any project, and the author does not hold any of the assets mentioned.
⚠️ This is not investment advice. Predictions are for reference only.
#BlackMondayFearsGripWallStreetasTradersLose$52MilliononAIStockBets