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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.

14333 Articles
Created: 2026/02/02 18:52
Updated: 2026/02/02 18:52
Jupiter [JUP] surges amid 62% daily volume spike – Can bulls hold?

Jupiter [JUP] surges amid 62% daily volume spike – Can bulls hold?

The liquidation map highlighted the $0.542-$0.548 area as a zone of interest for a bearish reversal despite the positive online engagement.

Author: Coinstats

2025/08/29

Ethereum Price Forecast: ETF inflows blow past $4 billion as whales accumulate 1.44 million ETH in August

Ethereum Price Forecast: ETF inflows blow past $4 billion as whales accumulate 1.44 million ETH in August

Ethereum (ETH) remained muted near $4,500 on Thursday despite sustained accumulation from institutional investors and whales over the past few days.

Author: Fxstreet

2025/08/29

XRP Rockets 1,181% in Hourly Liquidation Imbalance as Price Reclaims $3

XRP Rockets 1,181% in Hourly Liquidation Imbalance as Price Reclaims $3

The post XRP Rockets 1,181% in Hourly Liquidation Imbalance as Price Reclaims $3 appeared on BitcoinEthereumNews.com. XRP is one of the most-watched altcoins on the crypto market, especially at a time when the industry is undergoing intense consolidation. In earlier trading sessions, the XRP price reclaimed the $3 price mark amid a mile rebound, triggering an unusual shift in the coin’s liquidation imbalance. XRP price and liquidation divergence It is worth noting that XRP has showcased different outlooks on a variety of timelines. While the coin has a marginal growth rate of 0.67% in the past 24 hours to $3.017, on lower time frames, it has dropped considerably. You Might Also Like This has created a shift in the liquidation amount in the past four hours. CoinGlass data shows that long traders recorded only a minor loss of $16,570 as of press time. In contrast, short traders faced a loss of $212,290.  While these figures appear small, the imbalance of 1,181% within this time span paints a clearer picture of the market outlook. There are a lot of projections for the XRP price in both the short and long term. The growing embrace of the RLUSD stablecoin has even created more liquidity for XRP on the XRPL. With the Ripple stablecoin entering the top 100 asset list by market capitalization, the broader ecosystem has continued to expand. XRP to reclaim ATH? The price of XRP has maintained a frantic push to reclaim the all-time high of $3.84 it achieved in 2018. Although the coin currently maintains a positive trading volume of $6.87 billion, buying momentum appears to have slowed down. You Might Also Like Every form of legal uncertainty around the coin has been removed, paving the way for direct engagement with institutional investors. In light of this, the push for a spot XRP ETF product has continued to grow, with asset managers like Bitwise and Grayscale spearheading the push.…

Author: BitcoinEthereumNews

2025/08/29

Hyperliquid's XPL short squeeze reveals the structural risks of pre-market trading

Hyperliquid's XPL short squeeze reveals the structural risks of pre-market trading

How whales exploited the right timing, location, and people in $XPL's pre-market trading on Hyperliquid to profit from it—that is, early holders hedged their positions by shorting, thus forming a "crowded trade" that was ultimately detonated by an "ignition strategy"—is not a random market fluctuation, but a systemic risk stemming from the structural flaws of the pre-market market. The story begins with Aunt AI ’s tweet: original: https://x.com/ai_9684xtpa/status/1960506447965642864 This article doesn't examine the context of the XPL incident, but rather discusses some structural and systemic risks in the pre-market trading market. While every model has its advantages and disadvantages, this isn't about right or wrong; this article aims to highlight these risks and their underlying causes. Section 1: A New Paradigm: Pre-Market Trading Pre-market trading (more accurately, "pre-launch trading") essentially creates a synthetic market for a token that hasn't yet been issued or publicly circulated. This isn't a reaction to information about existing assets, but rather a pure price discovery process for future assets. The underlying asset isn't the token itself, but rather a futures contract, which can be spot, over-the-counter, or perpetual. This shift in mechanisms fundamentally alters the nature of risk. While the primary risks of traditional pre-market trading are insufficient liquidity and increased volatility, the existence and fundamental value of the asset remain unquestioned. However, the cryptocurrency pre-market introduces new risk dimensions: first, settlement or conversion risk. This involves the possibility that the project may never issue its tokens, preventing the market from converting to a standard spot or perpetual contract market and ultimately leading to suspension or delisting. Secondly, there's the risk of price anchoring. Without an external spot market to serve as a price reference, market prices are entirely determined by buying and selling activity within the platform, forming a self-referential closed loop that makes the market more susceptible to manipulation. Therefore, the innovation of pre-market cryptocurrency trading lies in creating a market out of thin air, but at the cost of creating a structurally more fragile trading environment with a more diverse range of risks. It’s not that everyone is unaware of this risk, but exchanges can obtain traffic, market makers can achieve “price discovery” in advance, and project parties/early investors can “hedge risks” - under the premise of multiple parties making profits, everyone acquiesces to this arrangement (risk). Section 2: DEX hedging is like walking on a tightrope with a double-edged sword 2.1 Rational Hedgers: Why Early Holders Short Pre-Market Futures to Lock in Value Before a new token's TGE (Tentative General Equity), early holders (including private investors, team members, and airdrop recipients) face a common dilemma: they hold tokens or token claims that are not yet circulated and tradable, exposing the future value of these assets to significant market uncertainty. Once the token goes public, its price could be far lower than expected, significantly reducing their paper wealth. The pre-market futures market offers a near-perfect solution to this dilemma. By shorting an equivalent amount of perpetual swaps in the pre-market, holders can lock in the future selling price of their tokens in advance. For example, if a user expects to receive 10,000 airdrop tokens and the futures price of the token is $3 in the pre-market, they can hedge their risk by shorting 10,000 contracts. Regardless of the spot price at the time of the TGE, their total profit will be locked in at approximately $30,000 (ignoring transaction costs and basis). This operation essentially creates a delta-neutral position: the risk of the long spot position (holding the pending airdrop) is offset by the short futures position (shorting the perpetual swap). For any rational risk-averse person, this is a standard and sensible financial strategy. 2.2 The formation of a crowded trade: when collective hedging creates concentrated vulnerability When a large number of market participants trade at the same time, using the same strategy and based on similar logic, "crowded trade" arises. This risk stems not from asset fundamentals (exogenous risk) but from the high correlation between market participants' behavior, making it an endogenous risk. If you have watched the ALPACA episode before, you will know that this operation is a "market consensus" - where there is market consensus, there is direction; where there is direction, there are opportunities; where there are opportunities, there is speculation. This crowding phenomenon is structural and predictable in the pre-market. The nature of airdrops and early token distributions creates a large, homogeneous group (i.e., token recipients) who, at the same point in time (pre-TGE), face the same exact risk exposure and have the same anticipatory motivation (shorting). Meanwhile, the group of speculators willing to take the risk and buy these futures contracts is relatively small and dispersed. This natural imbalance between long and short positions inevitably leads to extreme market crowding on the short side, creating a classic case of a crowded short. The greatest danger of a crowded trade lies in its fragility. With the vast majority of investors on the same side of the boat, once a catalyst forces them to close their positions (such as an adverse price movement), there will be a shortage of counterparties in the market to absorb these closing orders. This triggers a stampede-like "escape from the exits," leading to extreme, drastic, one-way price movements. For crowded short positions, this stampede manifests as a devastating short squeeze. This hedging tool, originally intended for risk management, has, through its collective use, instead created a new and greater source of systemic risk. 2.3 Identifying Imbalances: Detecting Crowding Through Data Analysis While an individual trader cannot know exactly how many people hold the same position as him or her, by analyzing publicly available market data, it is possible to effectively identify signs of crowded trading. Open Interest (OI) Analysis : OI is a key indicator measuring the total number of open derivatives contracts in the market, reflecting the amount of capital flowing into the market and market participation. In the pre-market, if OI rises continuously and rapidly while prices stagnate or even decline slightly, it is a strong signal that a large amount of capital is pouring into short positions, forming a bearish consensus and a short crowd is forming. On-chain data analysis : Although the tokens are not yet in circulation, analysts can track airdrop-related activity using blockchain explorers. By analyzing the number of wallets eligible for the airdrop, the concentration of token distribution, and the historical behavior of these wallets, it is possible to roughly estimate the total amount of "spot" positions that may require hedging. A large and dispersed airdrop often indicates stronger hedging demand and higher congestion risk. Funding Rates and Spreads : On platforms with funding rates like Hyperliquid, persistently negative and deepening funding rates are direct evidence of short-term dominance. On platforms like Aevo, while lacking funding rates, widening bid-ask spreads and order book depth on the sell side significantly exceeding the buy side can also indicate unilateral selling pressure. This series of analyses reveals a profound phenomenon: "crowded hedging" in the pre-market isn't an accident of market failure, but rather an inevitable product of systemic design. The airdrop mechanism creates a large, aligned group of traders, and the pre-market provides them with a perfect hedging tool. Individually rational behavior (hedging risk) converges into a collectively irrational state (an extremely vulnerable, crowded position). This vulnerability is predictable, systematically concentrating a large number of risk-averse traders, creating a perfect prey pool for predators who understand and are able to exploit this structural flaw. A short squeeze/long squeeze does not require a reason, a narrative, or a purpose. Instead, when funds reach a certain level, they will attract whales and gambling — the contract version of a crime of holding a treasure. Section 3: Ignition Moment: Exploiting Crowded Transactions and Triggering Chain Liquidations 3.1 Momentum Ignition: A Mechanism of Predatory Trading Strategies Momentum ignition is a complex market manipulation strategy typically executed by high-frequency traders or large trading funds. Its core objective is not based on fundamental analysis, but rather on creating artificial unilateral price momentum through a series of rapid, aggressive trades. The goal is to trigger pre-set stop-loss orders or forced liquidation levels in the market, and then profit from the resulting chain reaction. The execution of this strategy usually follows a precise "attack sequence": Probing and preparation: The attacker will first test the market's liquidity depth by submitting a series of small, rapid orders to create the illusion of growing demand. Aggressive order placement: After confirming that the market depth is insufficient, the attacker will flood the order book with a large number of market buy orders in a very short period of time. The goal of this stage is to quickly and violently drive up the price. Triggering a chain reaction: The sharp rise in price hits the forced liquidation price for a large number of crowded short positions. Once the first liquidation is triggered, the exchange’s risk engine automatically executes a market buy order to close the short position, further pushing up the price. Profit-taking: The initial attackers had already built up a large number of long positions in phases 1 and 2. When the cascading liquidations began and a large amount of passive buying flooded the market, the attackers began to reverse course, selling their long positions to these forced liquidation buyers, thereby realizing profits at the inflated prices they had created. 3.2 Perfect Prey: How Illiquidity and Short Crowd Create an Ideal Attack Environment The pre-market provides a near-perfect breeding ground for implementing a momentum ignition strategy. Extremely Low Liquidity: As mentioned previously, the pre-market market is extremely illiquid. This means attackers can significantly impact prices with relatively little capital. Manipulation that would be costly in liquid, mature markets becomes inexpensive and efficient in the pre-market. Predictable Liquidation Clusters: Because a large number of hedgers use similar entry prices and leverage, their forced liquidation prices are densely distributed within a narrow range above the market price. This creates a clear and predictable "liquidation cluster." Attackers know that they only need to push the price up to this area to trigger a chain reaction. This is consistent with the "stop-loss hunting" behavior in traditional markets, where attackers specifically target known areas with concentrated stop-loss orders. (via liquidation map) One-sided market structure: Crowded shorts mean that during price increases, there is little natural buying power to absorb attacker selling pressure. Prices can rise effortlessly until they hit the "wall" of liquidation clusters. Once there, passive liquidation buying becomes the "fuel" that drives prices further up. 3.3 Disintegration: From Targeted Elimination to Comprehensive Chain Liquidation The whole process was a carefully planned, staged disintegration. Short Squeeze: The initial price surge triggered by the momentum ignition strategy triggers the liquidation of the first batch of the most leveraged and vulnerable short positions. The buying generated by these forced liquidations further pushes prices higher, forming a classic short squeeze. Cascading liquidations: Prices, driven high by the first round of short squeezes, now reach the liquidation levels for the second and third tranches of short positions. This creates a vicious positive feedback loop: liquidations lead to higher prices, which in turn trigger more liquidations. The market spirals out of control, with prices rising vertically in a very short period of time, forming the long upper shadow candlesticks commonly seen on charts, known as "liar candlesticks." The ultimate outcome: For early holders seeking to hedge, the outcome is a "margin call"—margin depleted, hedged positions forced to close, and significant financial losses. Not only do they lose the "insurance" they established to protect the spot value, but they also pay a heavy price for it. When the cascading liquidation exhausts all available short positions and the attackers complete their profit-taking, the price often quickly falls back to its initial level, leaving a devastating mess in their wake. From a deeper analysis, the momentum ignition strategy in the pre-market market has gone beyond the scope of simple market manipulation, or it is not market manipulation at all, but more like a game between funds. It's a form of structural arbitrage based on flaws in market microstructure. Attackers exploit publicly available information (airdrop size), platform design (leverage mechanisms), and predictable group behavior (collective hedging). By calculating the cost of the attack (the funds required to drive up prices in a low-liquidity market) and the potential reward (profits after triggering a liquidation cluster), they execute a near-deterministic game. Their profits come not from accurate judgments about asset value, but from the precise exploitation and amplification of market failures. Know the fact and why it is so May we always maintain a sense of awe for the market.

Author: PANews

2025/08/29

Cardano Futures Hit Record Volume

Cardano Futures Hit Record Volume

The post Cardano Futures Hit Record Volume appeared on BitcoinEthereumNews.com. Crypto News Cardano futures trading volume just hit record highs. Analysts weigh in on whether this signals a major price shift and what it means for ADA investors. Cardano is back in focus after futures trading volume jumped to $6.96 billion, the highest in five months. The spike points to deeper liquidity and stronger trader interest, a setup that often leads to sharp moves. At the time shown in your screenshots, ADA trades at $0.8450 with a market cap of $30.16 billion and a 1‑year gain of 150.96%. Technically, ADA has been coiling in a triangle and pressing higher. If momentum holds, a clean move through $1 could open room toward $1.10 in the near term. Derivative activity like this tends to magnify volatility. A push over $0.90-$0.92 keeps bulls in control, while $0.80-$0.82 is the first support zone traders will watch if price cools. Investors hunting early catalysts are also scanning presales that are heating up. One name on that radar is MAGACOIN FINANCE, which some traders are watching as a high‑demand allocation play during this altcoin rotation. What the futures surge could mean next The combination of rising volume and a tightening pattern often precedes decisive moves. Here are the near‑term scenarios many desks will map out: Bull case: break and hold above $1, then extend toward $1.05-$1.10 on momentum and fresh inflows. Base case: chop between $0.82 and $0.98 as open interest resets and funding normalizes. Bear case: lose $0.80 on heavy long liquidations, probing $0.74-$0.76 liquidity pockets before rebuilding. Spotlight on This New Altcoin Contender With presale demand ramping up across the market, MAGACOIN FINANCE is seeing accelerating interest. The countdown is live and the opportunity is slipping away with the limited supply being sold out at record pace before the next pump phase begins, creating…

Author: BitcoinEthereumNews

2025/08/29

Cardano Futures Hit Record Volume — Is a Major Price Shift Coming?

Cardano Futures Hit Record Volume — Is a Major Price Shift Coming?

Cardano is back in focus after futures trading volume jumped to $6.96 billion, the highest in five months. The spike […] The post Cardano Futures Hit Record Volume — Is a Major Price Shift Coming? appeared first on Coindoo.

Author: Coindoo

2025/08/29

YZY on Solana, 74 million “burned” in a few hours

YZY on Solana, 74 million “burned” in a few hours

The post YZY on Solana, 74 million “burned” in a few hours appeared on BitcoinEthereumNews.com. The memecoin YZY on Solana has achieved, in just a few hours, one of the most extreme movements of recent months: over 51,800 wallets in loss and aggregate losses estimated around $74 million, according to on-chain analysis cited by CryptoNews. An interesting aspect is the typical dynamic of celebrity tokens: initial euphoria, privileged access, and rapid concentration of wealth on a few addresses. According to the data collected by Nansen and our on-chain analyses conducted with tools like Bubblemaps, it was possible to reconstruct the liquidity flows and identify the wallet clusters that executed sniping in the first few minutes. Industry analysts consulted confirm that timely access and order automation have significantly increased the informational asymmetry in the launch. Key numbers (snapshot in the first 24 hours, data updated as of August 28, 2025) 70,200 wallets participated in the initial trading. Over 51,800 wallets are at a loss, with an aggregate deficit close to $74M. 11 wallets recorded profits exceeding $1M. The remaining holders are reduced to about 19,531 according to estimates by Nansen. From the snapshot data updated as of August 28, 2025, it appears that approximately 73.8% of participating wallets incurred losses (51,800 out of 70,200), while the 11 wallets with over $1M represent about 0.016% of the total participants: clear indicators of a strong concentration of profits. | Wallets involved at launch | 70,200 | Independent on‑chain analysis || Wallets at a loss | 51,800+ | Cointelegraph, CryptoNews || Total estimated losses | $74,000,000 | Cointelegraph, CryptoNews || Wallets with profit > $1M | 11 | On‑chain analysis || Current holders | ~19,531 | Nansen | Main Causes of the Crash The launch developed in a short timeframe, with minimal tokenomics and lacking evident technical applications. In this context, a combination of initial speculative pump, sniper activities,…

Author: BitcoinEthereumNews

2025/08/29

Ethereum Gains More Institutional Ground as Analysts Highlight Its Role in Finance

Ethereum Gains More Institutional Ground as Analysts Highlight Its Role in Finance

Ethereum gains momentum as institutions increase exposure through major ETFs. Whale adds $298 million Ethereum long, signaling strong market conviction. VanEck CEO brands Ethereum the “Wall Street token” amid growth. Ethereum continues to capture attention from major financial institutions as adoption expands across multiple investment avenues. According to Fox Business, VanEck CEO Jan van Eck described Ethereum as “the Wall Street token,” underlining his conviction that the network will sit at the heart of the growing stablecoin market. He observed that Ethereum or Ethereum Virtual Machine systems will prevail in this financial evolution. In addition, institutional demand for exchange-traded funds is demonstrating apparent momentum. According to the data provided by SoSoValue, the ETHA product at BlackRock registered new inflows in Ethereum of up to $262 million on Wednesday. Ethas Inflows ETHA has over $17 billion in total assets now, which indicates increasing investor confidence. VanEck Ethereum ETF, ETHV, brought in inflows of its own amounting to $3.35 million, a fraction of its bigger competitors. This comparison underlines the trend of large institutions accumulating bigger parts of institutional allocations when compared to small issuers accumulating positions over time. However, the net trend indicates a sustained demand for Ethereum in the financial market. Also Read: Ripple CTO Defends XRP Against Centralization Claims Amid BlackRock Comparisons Large-Scale Whale Activity Supports Market Sentiment Alongside institutional inflows, blockchain data shows continued activity from large Ethereum holders. Lookonchain reported that one whale has taken a significant long position of almost $298 million. The position highlights firm conviction in Ethereum’s price outlook despite the inherent risks of such concentrated exposure. According to CoinGecko, Ethereum’s trading value is $4,571, consistent with its gradual increase over the past few weeks. Nevertheless, leveraged traders have liquidation risks. The whale’s outlook will be at risk when Ethereum falls to lower than $4,343, which serves as a red flag to the market audience. The combination of institutional activity and the use of whale positioning creates an image of increasing market trust in Ethereum. Bulky inflows and leveraged commitments imply that investors believe that Ethereum will play a key role in the digital asset ecosystem, especially as different financial institutions gain momentum in adopting stablecoins. Ether is still cementing itself as a pillar of institutional crypto strategies. With ETFs drawing billions in inflows and whales betting heavily on price strength, the token is increasingly viewed as a vital pillar of both digital finance and traditional markets. Also Read: Pudgy Penguins Price Dips After 400% Surge as SEC Delay Sparks Sell-Off The post Ethereum Gains More Institutional Ground as Analysts Highlight Its Role in Finance appeared first on 36Crypto.

Author: Coinstats

2025/08/29

BTC, ETH, XRP, BNB Warnings: Profit Status Could Trigger Price Declines Soon

BTC, ETH, XRP, BNB Warnings: Profit Status Could Trigger Price Declines Soon

Will there be a big profit-taking event soon?

Author: CryptoPotato

2025/08/29

In the past 24 hours, the entire network contract liquidation was US$259 million, with both long and short positions exploding.

In the past 24 hours, the entire network contract liquidation was US$259 million, with both long and short positions exploding.

PANews reported on August 28th that Coinglass data showed that over the past 24 hours, the cryptocurrency market saw $259 million in liquidated contracts across the network, including $109 million in long positions and $150 million in short positions. The total liquidation amount for BTC was $37.996 million, and the total liquidation amount for ETH was $92.559 million.

Author: PANews

2025/08/28

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