Crypto Exchange FTX Hits New Record Over $936.24 million In short, liquidation.
Today is the biggest liquidation event in FTX history, with a close runner-up.
Will someone be carried out on a stretcher?
Considering the movement, it seems excessive. But he has about a dozen people who understand how liquid engines work. pic.twitter.com/DDs7RRM7qH
— Hasaka (@HsakaTrades) October 25, 2022
As reported, the deployment is the single largest liquidation event the exchange has recorded since its inception in 2019. In particular, FTX overtook its contemporaries by a very large margin. It is followed by Binance with $57.58 million and OKX with $46.72 million.
According to figures over the past 24 hours, the general cryptocurrency market has recorded liquidations of around $1.1 billion in short trades, i.e. bets on rising prices, reaching its highest level since July 2021.
In BTC alone, a $280 million short sale was liquidated on October 25th, and another $300 million BTC short sale was liquidated on October 26th.
A new, record day of liquidations on FTX.
— Byzantine General (@BizGeneral) October 26, 2022
Notably, these liquidations reportedly contributed to the short squeeze as the price of a large number of tokens increased within the last 24 hours.
For example, Ether (ETH) is 13.95% The price skyrocketed, leading the competition among the major cryptocurrencies whose prices increased within the last 24 hours. Ether was followed by Cardano (ADA) and Solana (SOL). 9.35% When 9.47%, the respective prices are rising. Bitcoin (BTC), the largest cryptocurrency by market capitalization, 7.02% price increase.
What usually makes liquidation easier?
Liquidation occurs in situations where an exchange forces the trader to close a trader’s leveraged position due to the loss of some or all of the trader’s initial margin. This situation is usually obtained at the moment when a trader is unable to meet the margin requirements of a leveraged position.
Long trades, meanwhile, registered an additional $95.5 million in liquidations amid general price swings. The development reportedly increased the overall market capitalization of the crypto market by 4%.
Notably, outstanding derivative contracts rose 6.6%, suggesting that traders opened additional positions in anticipation of further price surges.