Hugh Karp 🐢

#$1.5BInLeveragedCryptoBetsLiquidated 📉 When crypto prices fell, positions of those betting on a rise with leverage were automatically closed. A total of $1.53 billion in trades was liquidated in 24 hours; about 83.8% of these were “long” positions betting that prices would rise. This figure measures the total value of closed positions, not the cash taken out of investors’ pockets. 💸 ⚙️ Leverage is like opening a larger trade with a small amount of money. When the price moves far enough in the opposite direction, the collateral is no longer sufficient and the exchange forcibly closes the position. These sales can accelerate the decline further. The report links the wave of selling to the aftermath of a security breach at Binance 🔄 When prices recovered, some “short” positions betting on a decline were liquidated in turn; buying to close them can fuel the rise.$LSK $IDOL $Q