Crypto Futures Liquidation: The Devastating $138 Million Wipeout in an Hour

Key Points

1. Crypto futures liquidation is the forced closure of a trader’s leveraged position by an exchange when the margin falls below the maintenance level.

2. The $138 million liquidation event was part of a larger $965 million liquidation over 24 hours, driven by market volatility and leverage.

3. Large-scale liquidations can impact the broader crypto market by triggering price cascades and affecting liquidity.

4. Traders can mitigate risks by using stop-loss orders, managing leverage, and monitoring market conditions.

5. Liquidations serve as a reminder of the importance of risk management in volatile crypto markets.