FTX records largest short liquidation event in its history

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FTX Records Biggest Small Liquidation Event in Its History FTX Records Biggest Small Liquidation Event in Its History
FTX Records Biggest Small Liquidation Event in Its History

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cover art/illustration via cryptoslate

Cryptocurrency exchange FTX sets a new record over $936.24 million In short liquidation.

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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.

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

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