Liquidation

Liquidation occurs when a trader’s collateral is no longer sufficient to cover their leveraged position’s losses, triggering an automated forced closure by the exchange's liquidation engine. It is a critical risk-management mechanism that ensures the solvency of lending protocols and derivative platforms. In 2026, the focus has moved toward MEV-resistant liquidation models that protect users from predatory "cascades." This tag provides essential information on maintenance margins, health factors, and how to avoid liquidation in high-volatility environments.

15192 Articles
Created: 2026/02/02 18:52
Updated: 2026/02/02 18:52
XRP Price This Week: Trump’s China Tariff Shock Impact

XRP Price This Week: Trump’s China Tariff Shock Impact

The post XRP Price This Week: Trump’s China Tariff Shock Impact appeared on BitcoinEthereumNews.com. XRP price fell hard in the last 24 hours after a macro shock. President Donald Trump announced 100% tariffs on all Chinese imports starting on November 1, and investors cut risk fast. The move hit the broader market, not just XRP. Selling accelerated as derivatives positions unwound and liquidity thinned across major venues. XRP Price Breaks Key Support After Tariff Shock In XRP news, price lost its footing at the $2.75 area, a key base during recent consolidations. Sellers then pushed price below the 50-day and 200-day trend averages, near $2.91 and $2.57. These moving averages help traders gauge trend direction. A break below both often signals fading momentum and invites follow-through selling. Price also rejected a descending trendline near $3.00 shortly before the slide. That failure aligned with the loss of $2.75 and confirmed a bearish break in structure. Order books showed thin bids during the drop. That gap allowed stop-losses to cascade as market orders met limited support. Exchange data indicated heavier activity around XRP and ETH pairs, in further news. Traders moved tokens from cold storage to exchanges, which often precedes forced selling. Analysts said the latest Ripple XRP price pattern matched past macro-driven flushes. They pointed to liquidity gaps and momentum unwinds rather than a single whale event. Crypto Market Liquidations Hit Record $9.4B | Source: Coin Bureau, X XRP Price Levels to Watch Ahead Former support at $2.75 for XRP price turned into near-term resistance. Bulls would need a daily close back above that shelf to brighten momentum. The next cap sits at the round $3.00 mark. A reclaim there would suggest sellers lost control of the breakdown zone. Below spot, the first notable cushion sits near $2.20 for the Ripple coin. Price reacted there several times over the past year and drew responsive bids.…

Author: BitcoinEthereumNews
$800 Billion Crypto Crash: Why Bitcoin, Ethereum, XRP and Altcoins Are Falling

$800 Billion Crypto Crash: Why Bitcoin, Ethereum, XRP and Altcoins Are Falling

The post $800 Billion Crypto Crash: Why Bitcoin, Ethereum, XRP and Altcoins Are Falling appeared on BitcoinEthereumNews.com. The post $800 Billion Crypto Crash: Why Bitcoin, Ethereum, XRP and Altcoins Are Falling appeared first on Coinpedia Fintech News The cryptocurrency market suffered a massive wipeout, erasing nearly $800 billion in value within 24 hours. Around $19.2 billion in leveraged positions were liquidated as panic spread across exchanges. Bitcoin plunged to $110,951, marking a 16% drop, while Ethereum slipped to $3,795, down more than 12%. The total crypto market capitalization fell to $3.69 trillion, its sharpest single-day decline in months. Altcoins were hit even worse. XRP fell 25% to $2.34, and Dogecoin dropped 28% to $0.18. Solana slid to $177, Cardano fell over 25%, and BNB lost ground, trading near $1,122. What Sparked the Selloff Analyst Ash Crypto explained that the market’s collapse was like a chain reaction, a sudden stop in a highly leveraged game where too many traders had borrowed money to stay in. When prices started falling, everything quickly unraveled. The setup had been building for weeks. Crypto traders, especially on major centralized exchanges, were using heavy leverage, borrowing funds to amplify their bets. Many used “cross-margin” accounts, where one pool of collateral backed several trades at once. This made the market very fragile. Why the Market Was Vulnerable The trigger came when the United States announced new tariffs, creating fear across global markets. Bitcoin and Ethereum fell first, and because crypto assets tend to move together, altcoins followed. Their thin order books made the situation worse since even small sell orders caused large price drops. As prices broke below key levels, exchanges began automatic liquidations to cover loans. This forced the sale of collateral, often in altcoins, which pushed prices down even further. One liquidation led to another, creating a domino effect that erased more than 20 billion dollars in positions within hours. Crash or…

Author: BitcoinEthereumNews
An address opened a 25x leveraged ETH long position on Hyperliquid, worth $70.76 million

An address opened a 25x leveraged ETH long position on Hyperliquid, worth $70.76 million

PANews reported on October 12 that according to monitoring by on-chain analyst @ai_9684xtpa, the address 0xb9f...6d365 recharged 9.5 million USDC margin to Hyperliquid in the past two hours, and then opened a 25x leveraged long order of 18,960.93 ETH, worth US$70.76 million, with an opening price of US$3,717.76 and a liquidation price of US$3,282.87.

Author: PANews
Huang Licheng's HYPE and ETH long positions opened yesterday were partially liquidated again, resulting in a loss of over $410,000

Huang Licheng's HYPE and ETH long positions opened yesterday were partially liquidated again, resulting in a loss of over $410,000

According to PANews on October 12th, Huang Licheng experienced a significant liquidation yesterday, rebuilding his long positions in HYPE (10x) and ETH (25x). Today, he experienced another partial liquidation, resulting in a loss of $411,406 and a floating loss of $221,000, for a total loss of approximately $13 million.

Author: PANews
ETH Down Only 6.7% Following Friday’s Crypto Market Crash

ETH Down Only 6.7% Following Friday’s Crypto Market Crash

The post ETH Down Only 6.7% Following Friday’s Crypto Market Crash appeared on BitcoinEthereumNews.com. Ether (ETH), the native cryptocurrency of the layer-1 Ethereum blockchain network, is down about 6.7% in the past 24 hours, following Friday’s market crash, showing greater price resilience than many altcoins, which crashed by over 95% in some cases. The market crash sparked by US President Donald Trump’s tariff announcement took the price of ETH down to a low of about $3,510 on Friday, a decline of over 20% in a single day. Price tapped the 200-day exponential moving average (EMA), a dynamic support level, before rebounding to over $3,800. The relative strength index (RSI) is also at 35, nearing oversold conditions, signaling a potential reversal to the upside.  Ethereum price action and analysis. Source: TradingView The sudden market downturn liquidated nearly 1.6 million crypto traders, according to Coinglass. Following the market carnage, Sassal, a crypto investor, said: “BTC and ETH did relatively well compared to the long-tail of alts, which nuked 70% or more, with some even going down 95% or more. I’m not usually into conspiracies, but clearly this was not normal market behavior.” Friday’s market crash represented the most severe crypto liquidation event in history, wiping away up to $20 billion in 24 hours and shaking investor confidence in the markets, as fears of a protracted trade war between the US and China gripped traders. Related: ETH sells off alongside Bitcoin, but Ether adoption pace still supports rally to $10K ETH to $5,500 next or will inbound sell pressure suppress price? ETH is down over 22% from its all-time high of $4,957 reached in August, according to data from TradingView. Analysts from investment research firm Fundstrat forecast that ETH could rally to a new all-time high of $5,550 after bottoming out in Friday’s market downturn. Ether exchange inflow mean hits highest level recoded in 2025. Source: CryptoQuant…

Author: BitcoinEthereumNews
Best Crypto to Buy as Shibarium Refunds $4 Million After Exploit, Is Shiba Inu (SHIB) Ready to Pump?

Best Crypto to Buy as Shibarium Refunds $4 Million After Exploit, Is Shiba Inu (SHIB) Ready to Pump?

Following Shibarium refunding $4 million to users after a recent hack, Shiba Inu (SHIB) traders are watching to see if the token is ready to begin a new upswing. With the community still grappling with the news, investors are holding out for a pump from the newly found confidence, but some are doubtful. Meanwhile, another opportunity, Mutuum Finance, is simmering in the background for those who are looking for something other than meme coins.  Mutuum Finance (MUTM), which is available for just $0.035, has raised a staggering $17.1 million from a record 16,840+ investors in its presale. And whereas SHIB is constructed on hype, Mutuum Finance offers actual DeFi utility coupled with phenomenal growth potential. Shibarium’s $4 Million Refund Ignites Speculation of SHIB Comeback While Shibarium rolls out a $4 million refund program following a record exploit and network shutdown, the Shiba Inu (SHIB) community waits with bated breath for a turn. The speed of the relief efforts of the network, from rotating all validator keys to locking up over 100 contracts and reclaiming 4.6 million BONE tokens, reflect the good faith effort to revive investor confidence, as the SHIB price continues to remain within the contracting triangle pattern, which is good news for a future breakout.  Technical indicators show bearish momentum as constructers rebuild security, building upon this muted token that has investors on tenterhooks anticipating the relaunch of Ethereum bridge and compensation paid to victims. With this determined rebound period, focus is inevitably defaulted to break-out plays that bridge power with systematic growth, an area that Mutuum Finance (MUTM) is increasingly making inroads into. Mutuum Finance Presale Momentum Grows Fast  Mutuum Finance (MUTM) is in the investor limelight following immense momentum on Phase 6 of its presale. Tokens are now selling at $0.035, an increase by a 16.17% hike from the previous round. More than 16,840 investors have already bought , generating more than $17.1 million, a healthy sign of greater market confidence in Mutuum Finance’s long-term DeFi future. With more than 60% subscribed in Phase 6 well, early investors are buying ahead of the next price increase.  A reserve multiplier structure, distributed across 10% for low-risk projects and 35% for high-risk projects, acts as a second cushion. The structure facilitates system robustness, minimizes liquidation shocks, and guards capital integrity. Collateral management is being optimized too, for maximum borrowing power through mutually reinforcing leveraging of related assets, with minimal risk of bankruptcy and platform overall health. Real-Time Data Integrity with Chainlink Oracles For stable, accurate pricing and risk calculation, Mutuum Finance utilizes Chainlink oracles for USD, ETH, MATIC, and AVAX feeds. Fallback oracles, intricate data sources, and decentralized exchange TWAPs ensure the protocol valuation is accurate even in record-record volatility or low liquidity situations. Mutuum Finance will be launching its next-gen lending and borrowing protocol, a crucial milestone on its roadmap. Version 1 (V1) is expected to launch on the Sepolia Testnet in Q4 2025 and will feature essential elements like liquidity pools, mtTokens, debt tokens, and a liquidator bot. ETH and USDT will be present at launch for collateralization, lending, and borrowing and make users enjoy a secure, efficient, and scalable DeFi. The system further accommodates floating and fixed-rate instruments and matches supply and demand for liquidity as well as keeps the ecosystem in balance. While Shibarium compensates $4 million after its recent attack, Shiba Inu (SHIB) investors wait for a turnaround, but the majority of them are already eyeing Mutuum Finance (MUTM) since it has better potential for upside. At $0.035 under Phase 6 of its presale, MUTM has gained over $17.1 million in capital from 16,840+ investors, selling over 60% of tokens. Whereas meme-tokens do not have genuine DeFi utility in the form of lending and borrowing protocol, Chainlink-driven pricing, and reserve multipliers of up to 35% for extra security, Mutuum is establishing itself as a secure, scalable solution for long-term investors. As SHIB is picking up steam, Mutuum Finance is one of the top cryptos to bet on this month before presale develops into its subsequent stage. For more information regarding Mutuum Finance (MUTM) please use the following links: Website: https://mutuum.com/ Linktree: https://linktr.ee/mutuumfinance

Author: Coinstats
How Auto-Deleveraging Works on Crypto Perp Platforms and Why It Can Cut Winning Trades

How Auto-Deleveraging Works on Crypto Perp Platforms and Why It Can Cut Winning Trades

The post How Auto-Deleveraging Works on Crypto Perp Platforms and Why It Can Cut Winning Trades appeared on BitcoinEthereumNews.com. Auto-deleveraging is the emergency brake in crypto perpetuals that cuts part of winning positions when bankrupt liquidations overwhelm market depth and a venue’s remaining buffers, as Ambient Finance Founder Doug Colkitt explains in a new X thread. Perpetual futures — “perps” in trading shorthand — are cash-settled contracts with no expiry that mirror spot via funding payments, not delivery. Profits and losses net against a shared margin pool rather than shipped coins, which is why, in stress, venues may need to reallocate exposure quickly to keep books balanced. Colkitt frames ADL as the last step in a risk waterfall. In normal conditions, a blown-up account is liquidated into the order book near its bankruptcy price. If slippage is too severe, venues lean on whatever buffers they maintain — insurance funds, programmatic liquidity, or vaults dedicated to absorbing distressed flow. Colkitt notes that such vaults can be lucrative during turmoil because they buy at deep discounts and sell into sharp rebounds; he points to an hour during Friday’s crypto meltdown when Hyperliquid’s vault booked about $40 million. The point, he stresses, is that a vault is not magic. It follows the same rules as any participant and has finite risk capacity. When those defenses are exhausted and a shortfall still remains, the mechanism that preserves solvency is ADL. The analogies in Colkitt’s explainer make the logic intuitive. He likens the process to an overbooked flight: the airline raises incentives to find volunteers, but if no one bites, “someone has to be kicked off the plane.” In perps, when bids and buffers will not absorb the loss, ADL “bumps” part of profitable positions so the market can depart on time and settle obligations. He also reaches for the card room. A player on a hot streak can win table after table until…

Author: BitcoinEthereumNews
Worst Crypto Crash in History as $19B Were Liquidated, But MemeCore and MAGACOIN FINANCE Show Incredible Strength

Worst Crypto Crash in History as $19B Were Liquidated, But MemeCore and MAGACOIN FINANCE Show Incredible Strength

The cryptocurrency market is stabilizing after one of the most violent crashes in modern history, triggered by President Donald Trump’s surprise announcement of a 100% tariff on all Chinese imports. The policy, set to take effect on November 1, rattled investors globally and unleashed the most severe wave of crypto liquidations seen in years. The fallout was immediate. Within hours, the crypto market shed more than $200 billion in value, with leveraged positions collapsing across major exchanges. Bitcoin (BTC) plunged below $106,000 before recovering to $112,000, while Ethereum (ETH) rebounded from $3,500 to $3,800 after intense panic selling. Meanwhile, XRP and Solana (SOL) fell 13.5% and 16.1%, respectively, as liquidity evaporated. According to data, over $19.3 billion worth of leveraged positions were liquidated within 24 hours, impacting more than 1.6 million traders. Analysts described the event as “panic-driven,” spurred by fears of a prolonged U.S. – China trade war that could reshape capital flows for the rest of 2025. Despite the carnage, key altcoins have begun to show remarkable resilience, particularly in sectors that blend utility with cultural momentum. Among them, MemeCore and MAGACOIN FINANCE stand out as bright spots in an otherwise battered market. MAGACOIN FINANCE Emerges as a Post-Crash Power Player Amid the chaos, MAGACOIN FINANCE has drawn growing attention for its strength, structure, and staying power. While many tokens struggled to maintain visibility during the crash, MAGACOIN FINANCE continued building momentum through its $16 million+ presale milestone, HashEx and CertiK audits, and scarcity-driven tokenomics. Its community presence on X and Telegram remains one of the most active in the altcoin space, providing consistent visibility even as markets turned red. Analysts projecting 50× upside potential say that MAGACOIN FINANCE is emerging as a strategic accumulation target for investors seeking growth exposure without overleveraging. What makes MAGACOIN FINANCE notable in this cycle is its contrast to speculative meme assets, it blends cultural relevance with audit-backed credibility, bridging a gap that has long divided crypto retail enthusiasm from institutional confidence. As capital rotates from short-term trades to projects with stronger foundations, MAGACOIN FINANCE’s clear roadmap and token structure position it as a natural beneficiary of post-crash capital reallocation. Market watchers note that volatility tends to accelerate the discovery of quality projects. In that context, MAGACOIN FINANCE’s continued growth during one of the worst crashes in crypto history signals that it’s not merely surviving turbulence, it’s thriving within it. MemeCore Defies Market Panic with Proof-of-Meme Innovation While nearly every token posted double-digit losses, MemeCore (MEME) shocked analysts by gaining 7.87% in 24 hours and 6.07% on the week, defying the selloff. Trading volume more than doubled to $39.8 million, even as broader liquidity dried up. The project’s strength comes from its Proof-of-Meme (PoM) consensus mechanism, a creative spin on blockchain validation that rewards community engagement and meme-driven activity rather than traditional staking or mining. This innovation, paired with EVM compatibility, attracted retail traders seeking stability within a familiar Layer 1 ecosystem. MemeCore’s total market cap has now reached $2.32 billion, cementing it as one of the top-performing Layer 1s of 2025. The upcoming MemeX Festival on October 15 is also generating excitement, as it promises to showcase a wave of new meme-based applications and NFT integrations built on the platform. Analysts at CoinMarketCap’s momentum desk note that MemeCore’s performance highlights an emerging pattern: in moments of macro fear, traders are shifting from high-beta DeFi and AI tokens toward community-led, culturally resilient ecosystems. However, experts caution that the project’s relatively low liquidity compared to its market cap could amplify volatility during sharp market moves. Even with that caveat, MemeCore’s ability to rally during the sharpest market drop of 2025 underscores its growing role as a niche safe haven for retail sentiment. The Road Ahead: From Capitulation to Confidence This week’s $20 billion liquidation was a harsh reminder of crypto’s vulnerability to macro shocks. Yet, as seen in prior cycles, these events often serve as catalysts for renewal. Institutional buying near Bitcoin’s lows suggests that large players are treating this panic as an accumulation opportunity. Meanwhile, resilient altcoins like MemeCore and MAGACOIN FINANCE are capturing the imagination of retail investors seeking both innovation and stability. With the market rebounding from the brink, the coming weeks will test whether these altcoins can sustain their momentum amid geopolitical uncertainty. If they can, both MemeCore’s cultural narrative and MAGACOIN FINANCE’s scarcity-backed framework may define the recovery phase leading into 2026. To learn more about MAGACOIN FINANCE, visit:Website: https://magacoinfinance.comAccess: https://magacoinfinance.com/accessTwitter/X: https://x.com/magacoinfinanceTelegram: https://t.me/magacoinfinance

Author: Coinstats
Tether, Circle minted $1.75 billion in new stablecoins to inject liquidity and stabilize markets

Tether, Circle minted $1.75 billion in new stablecoins to inject liquidity and stabilize markets

Decentralized finance players and major crypto institutions are moving swiftly to restore stability and confidence after one of the sharpest sell-offs in the digital asset market this year, with stablecoin issuers Tether and Circle minting billions in new tokens and Ethereum’s largest treasury firm, Bitmine, scooping up large amounts of Ethereum. The October 10 crash, […]

Author: Cryptopolitan
How Auto-Deleveraging on Crypto Perp Trading Platforms Can Shock and Anger Even Advanced Traders

How Auto-Deleveraging on Crypto Perp Trading Platforms Can Shock and Anger Even Advanced Traders

Auto-deleveraging is the emergency brake in crypto perpetuals that cuts part of winning positions when bankrupt liquidations overwhelm market depth and a venue’s remaining buffers, as Ambient Finance Founder Doug Colkitt explains in a new X thread.Perpetual futures — “perps” in trading shorthand — are cash-settled contracts with no expiry that mirror spot via funding payments, not delivery. Profits and losses net against a shared margin pool rather than shipped coins, which is why, in stress, venues may need to reallocate exposure quickly to keep books balanced.Colkitt frames ADL as the last step in a risk waterfall. In normal conditions, a blown-up account is liquidated into the order book near its bankruptcy price. If slippage is too severe, venues lean on whatever buffers they maintain — insurance funds, programmatic liquidity, or vaults dedicated to absorbing distressed flow. Colkitt notes that such vaults can be lucrative during turmoil because they buy at deep discounts and sell into sharp rebounds; he points to an hour during Friday's crypto meltdown when Hyperliquid’s vault booked about $40 million. The point, he stresses, is that a vault is not magic. It follows the same rules as any participant and has finite risk capacity. When those defenses are exhausted and a shortfall still remains, the mechanism that preserves solvency is ADL.The analogies in Colkitt’s explainer make the logic intuitive. He likens the process to an overbooked flight: the airline raises incentives to find volunteers, but if no one bites, “someone has to be kicked off the plane.” In perps, when bids and buffers will not absorb the loss, ADL “bumps” part of profitable positions so the market can depart on time and settle obligations. He also reaches for the card room. A player on a hot streak can win table after table until the room effectively runs out of chips; trimming the winner is not punishment, it is how the house keeps the game running when the other side cannot pay.How the queue worksWhen ADL triggers, exchanges apply a rule to decide who gets reduced first. Colkitt describes a queue that blends three factors: unrealized profit, effective leverage, and position size. That math typically pushes large, highly profitable, highly leveraged accounts to the front of the line—“the biggest, most profitable whales get sent home first,” as he puts it. Reductions are assigned at preset prices tied to the bankrupt side and continue only until the deficit is absorbed. Once the gap closes, normal trading resumes.Traders bristle because ADL can clip a correct position at peak momentum and outside normal execution flow. Colkitt acknowledges the frustration but argues the necessity is structural. Perp markets are zero sum. There is no warehouse of real bitcoin or ether behind a contract, only cash claims moving between longs and shorts. In his words, it is “just a big boring pile of cash.” If a liquidation cannot clear at or above the bankruptcy price and buffers are spent, the venue must rebalance instantly to avoid bad debt and cascading failures.Colkitt emphasizes that ADL should be rare, and most days it is. Standard liquidations and buffers usually do the job, allowing profitable trades to exit on their own terms. The existence of ADL, however, is part of the compact that lets venues offer non-expiring, high-leverage exposure without promising an “infinite stream of losers on the other side.” It is the final line in the rulebook that keeps the synthetic mirror of spot from cracking under stress.He also argues that ADL exposes the scaffolding that typically stays hidden. Perps build a convincing simulation of the underlying market, but extreme tapes test the illusion. The “edge of the simulation” is when the platform must reveal its accounting and forcibly redistribute exposure to keep parity with spot and stop a cascade. In practice, that means a transparent queue, published parameters, and, increasingly, on-screen indicators that show accounts where they sit in the line.Colkitt’s broader message is pragmatic. No mechanism can guarantee painless unwinds, only predictable ones. The reason ADL provokes strong reactions is that it strikes winners, not losers, and often at the most visible moment of success. The reason it persists is that it is the only step left once markets refuse to clear and buffers run dry.For now, exchanges are betting that clear rules, visible queues and thicker buffers keep ADL what it should be — a backstop you rarely see but never ignore.

Author: Coinstats