Weekend Sell-Off Hits EdgeX’s Nasdaq-Linked Perp as $13M in Longs Liquidated

Core Insights - A weekend sell-off in the Nasdaq 100-linked perpetual futures market on EdgeX resulted in approximately $13 million in liquidations, indicating the risks associated with trading equity-index perpetuals when traditional markets are closed [1][2][5] Market Dynamics - A newly created wallet executed a time-weighted average price (TWAP) order to short 398 XYZ100 contracts, valued at around $10 million, which contributed to the sell pressure [1] - The price of XYZ100 dropped over 3.5% within minutes due to this sell pressure, leading to a cascade of liquidations [2] - One trader incurred a loss of approximately $7.4 million in long positions, while another faced a liquidation of $2.7 million, culminating in total liquidations of around $13 million in the market [3] Market Sentiment - Traders expressed concerns on social media about the potential for market manipulation during off-hours, as XYZ100 fell nearly 4% over the weekend without any significant macro or equity news [4] - Some traders noted that trading during weekends involves risks due to thin order books, suggesting that market movements are influenced by those with substantial capital rather than broader market trends [4] Platform Performance - EdgeX has emerged as one of the largest platforms for perpetual futures trading, processing approximately $167 billion in trading volume last month, often competing closely with major rivals like Aster and Hyperliquid [4]