A total of 172,113 traders were liquidated over the past 24 hours after $803 million in leveraged positions were forcibly closed across ten crypto exchanges. CoinGlass data shows that 86% of the total liquidations, equivalent to $694 million, were long positions held by market participants betting on price gains. The most striking anomaly came from equity instruments: liquidation volume for tokenized SanDisk stock surpassed XRP, signaling heavy leverage in the chip sector that has now spilled over into crypto exchanges.
The trigger for this selloff did not stem from internal digital asset news, but from a sharp downturn in Asian stock markets.
Memory Chip Stocks Tumble in Seoul
Pressure began in the South Korean market. Shares of two semiconductor manufacturers, Samsung Electronics and SK Hynix, each tumbled about 8% in Seoul amid valuation concerns over the artificial intelligence (AI) sector and stiff competition from Chinese memory chip makers. The benchmark KOSPI index slid more than 6% in intraday trading, briefly breaking below the 6,000 level, its lowest point since late July.
Weakness spread to other regional exchanges. Hong Kong’s Hang Seng Index fell 0.4%, while Nasdaq futures fell 0.6%, extending Monday’s 0.78% decline. In macro markets, the Dollar Index held around 102.50, its highest level since April last year. At the same time, WTI crude traded around $92.67 per barrel and Brent touched $106 following a three-day rally fueled by attacks in Saudi Arabia and threats to the Strait of Hormuz. This energy commodity rally inflicted losses on Brent short sellers, contrasting with most other assets that remained under pressure.
Fifteen-Minute Flash Shock in the Bitcoin Market
The crypto market was briefly swept into the global downturn. According to data from the @WatcherGuru account on X, Bitcoin’s price briefly dropped below $82,000, triggering $120 million in long liquidations in just 15 minutes. The rapid decline flushed out speculative bets from highly leveraged traders.
However, that selling pressure quickly abated. Bitcoin recovered back above $83,000, showing signs of decoupling from the slide in Asian equities. This rebound preserved spot market price structure amid external stock market turmoil.
Anticipation of Inflation Data and Institutional Hedging
Market attention is now focused on Thursday’s release of the US Consumer Price Index (CPI) report as the next key catalyst. Projections from Truflation estimate annual US inflation for September rose to 3.6%. That figure is a focal point as it could sway the direction of interest rate policy.
Facing macro uncertainty, Paul Howard of Wincent expects institutional investors to increase hedging through derivatives markets rather than trim their core crypto exposure. For day traders, the massive liquidations in SanDisk tokens delivered a valuable lesson: tech stock risks can now vaporize capital in crypto accounts within hours.
Reported by CoinDesk.
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Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
