Shocking $195 Million Wiped Out In One Hour
The post Shocking $195 Million Wiped Out In One Hour appeared on BitcoinEthereumNews.com.
The cryptocurrency market just experienced a brutal hour that saw $195 million in futures liquidated across major exchanges. This staggering figure represents one of the most intense liquidation events in recent months, sending shockwaves through the trading community. If you’re active in crypto trading, understanding what triggered this massive wipeout could help you avoid similar pitfalls. What Exactly Are Futures Liquidated? When we talk about futures liquidated, we’re referring to the forced closure of leveraged positions. Traders using leverage borrow funds to amplify their trading power. However, when the market moves against their position, exchanges automatically close these positions to prevent further losses. The $195 million in futures liquidated represents thousands of traders who got caught on the wrong side of this volatile move. Why Did This Massive Liquidation Happen? Several factors converged to create this perfect storm. First, market sentiment had been overly optimistic, leading to excessive long positions. When key support levels broke, it triggered a cascade of liquidations. The domino effect accelerated as more positions got liquidated, creating what traders call a ‘liquidation spiral.’ Key triggers included: Breaking critical technical support levels Over-leveraged long positions Market-wide fear and panic selling Automated trading algorithms amplifying the move How Does This Compare to Previous Liquidation Events? The scale of futures liquidated in this event places it among the significant market moves of 2024. However, it’s important to note that the $654 million liquidated over 24 hours, while substantial, remains below some historical extremes. The market has seen single-day liquidation events exceeding $1 billion during major crashes. What Can Traders Learn From This Event? This massive liquidation event serves as a crucial reminder about risk management. Traders who survived the wipeout typically employed several protective strategies. Proper position sizing, stop-loss orders, and avoiding excessive leverage proved essential during this volatility…
Filed under: News - @ November 13, 2025 11:22 pm