FTX Records Biggest Small Liquidation Event in Its History
A total of $936.24 million was secured in short liquidations on the popular cryptocurrency exchange FTX, the largest since its emergence.
Cryptocurrency exchange FTX sets a new record over $936.24 million In short liquidation.
Today was the biggest liquidation event on FTX in its history and the runner-up isn’t even close.
Someone is taken out on a stretcher?
Considering this move seems excessive. But then there are the 12 people who understand how their liquid engine works. pic.twitter.com/DDs7RRM7qH
— Hasaka (@HsakaTrades) 25 October 2022
As reported, this development is the largest liquidation event ever recorded by the exchange since it emerged in 2019. Notably, the FTX outperformed its contemporaries by a very wide margin. It is trailed by Binance, which recorded a record $57.58 million, and OKX, with $46.72 million.
According to data from the past 24 hours, the general crypto market recorded liquidations of around $1.1 billion on short trades, or bets against price increases reaching its highest level since July 2021.
On BTC only, the short was liquidated on October 25th at $280 million and an additional $300 million of BTC shorts were liquidated on October 26th.
Another, new, record day of liquidations on FTX.
— Byzantine General (@ByzGeneral) 26 October 2022
Notably, these liquidations reportedly contributed to a minor squeeze, as many tokens saw price increases within the past 24 hours.
Ether (ETH), for example, entered a 13.95% Its price surge, leading the race among major cryptocurrencies, has seen a rise in prices within the past 24 hours. Others that trailed Ether are Cardano (ADA) and Solana (SOL), which 9.35% And 9.47%, increasing their respective prices. Furthermore, bitcoin (BTC), the largest cryptocurrency by market cap, 7.02% price hike.
What usually facilitates liquidation?
Liquidation appears in situations where an exchange closed a trader’s leveraged position due to a partial or total loss of the trader’s initial margin. This position is usually attainable at times when traders are unable to meet the margin required for a leveraged position.
Meanwhile, long trades also led to another record $95.5 million in liquidations amid prevailing price volatility. This development reportedly increased the overall market cap of the crypto market by 4%.
Notably, the amount of outstanding unresolved derivatives contracts increased by 6.6%, meaning traders opened additional positions in anticipation of further price increases.
Credit : cryptoslate.com