Nearly $52 million in leveraged chip-stock bets were wiped out in just 10 minutes on Saturday — while Wall Street was closed and the real shares were not trading at all. About $38 million of the losses came from traders betting prices would rise, so traders now wait for Monday's US open to see how far the weekend crypto prices strayed from the real share prices.
Key points:
• About $51.6 million in chip-stock perpetual futures were liquidated between 21:22 and 21:32 UTC on Saturday, and about $38 million came from long bets.
• SOXL, the fund that triples daily chip-stock moves, took the biggest hit at about $12.7 million, with SanDisk and SK Hynix near $10.8 million each.
• The selling started on Binance and spread to Hyperliquid in under a second, with no live Wall Street price to follow.
These were not normal stock trades. They were perpetual futures — crypto-exchange contracts that track a stock's price and trade 24 hours a day, even on a Saturday night. When a leveraged trader's losses eat through their deposit, the position is closed automatically, and that forced selling can push the next trader into loss too. CoinGlass data shows that cascade ran for 10 straight minutes, from 21:22 to 21:32 UTC, and cleared about $51.6 million in chip-linked positions.
The order flow shows how fast it spread. Trading firm Tread.fi's review put the first large SanDisk and Micron sell orders on Binance at 21:21:59 UTC. Less than a second later, orders hit Hyperliquid, where Trade XYZ lists stock-tracking contracts, and about 10 addresses opened bets against six chip-linked contracts within 1.8 seconds. Binance handled about $21.9 million of SanDisk trading in that first minute, against about $3.1 million on Trade XYZ. SOXL led the liquidations at about $12.7 million, followed by SanDisk and SK Hynix at about $10.8 million each.
Memory-chip names were already under pressure after a rough week, as investors weighed new competition from Chinese chipmaker CXMT. But on Saturday there was no real share price to anchor these contracts — Trade XYZ's rules let its own trading set the reference price until outside stock quotes return. That means crypto traders were mostly reacting to each other, in a thin weekend market, with leverage doing the damage.
What happens next?
Monday's US open is the real test. When live share prices return, traders will see whether Saturday's crypto prices were close to reality or far away from it — and anyone still holding a leveraged chip-stock perpetual may face a sharp catch-up move. The lesson from Saturday is simple: a contract that never sleeps can still lose $52 million in 10 minutes when the market it tracks is asleep.
Read also: 8,237 Bitcoin Move Onto Exchanges in 7 Days — Sell-Off Next?
— Crypto News Daily News Desk
This post is news only, not financial advice. Always do your own research before buying or selling crypto.
Sources: CoinDesk, CoinGlass, CryptoBriefing, Traders Union
Comments
Post a Comment