JUST IN: $160,000,000 worth of crypto shorts liquidated in the past 30 minutes. ...

Core Insights - Cryptocurrency prices are recovering after a significant flash crash on October 10, which resulted in a loss of billions in a single day [2] - The total market capitalization of cryptocurrencies dropped approximately 14%, from $4.32 trillion on October 8 to $3.79 trillion by October 12 [2] - The recent crash saw over $19 billion in liquidations, marking it as the largest liquidation event in crypto history [3] Leverage in Cryptocurrency - Leverage, which involves using borrowed funds to enhance investment positions, is prevalent in the cryptocurrency market and can lead to amplified rewards and losses [5] - Nearly 70% of Bitcoin trading in 2023 has been conducted through perpetual futures, a type of derivative that does not expire and is designed to track the spot price of assets [6] - The introduction of perpetual futures in the U.S. has allowed for significant leverage, with platforms offering up to 10-fold leverage, while others globally provide up to 500-fold leverage [7] Impact of Leverage on Market Volatility - The use of leverage increases the likelihood of liquidation, as investors must maintain a certain margin and pay interest on borrowed amounts [8] - The flash crash was attributed to the combination of high leverage and thin liquidity in the market, with perpetual futures accounting for a substantial portion of trading volumes [9]

maple finance recorded zero losses on $4.45b during october 10's $19b liquidation cascade. every other lending protocol got rekt. undercollateralized credit that survives that stress test now becomes aave collateral. syrupusdc yields 7.4% base then loops through aave for 25%. institutions just got proof their credit infrastructure works better than overcollateralized lending during black swans ...

After getting liquidated, Machi(@machibigbrother) deposited another 284K $USDC into #Hyperliquid to keep longing $ETH!Current position: 2,300 $ETH($8.8M)Liquidation price: $3,680.92He's gone from $44.84M in profits to over $13.7M in losses!https://t.co/fk2wRZjZpx https://t.co/Y533mmMI8V ...

Core Argument - The argument that a funded account is equivalent to its maximum drawdown is flawed, as buying power and loss budget are distinct [1] - Funded accounts offer higher leverage compared to personal accounts, reducing the risk of liquidation [2][3] - Funded accounts provide limited downside risk (evaluation fee) and unlimited upside potential, with risk managed through drawdown rules [4] Value Proposition of Funded Accounts - Funded accounts offer a significantly higher dollar per risk ($/R) compared to personal accounts, allowing for larger potential payouts with a smaller fraction of drawdown [3] - Breakout accounts provide leverage (5x for BTC, 2x for alts), making it challenging to replicate the notional value with personal accounts [3] - With a larger capital base in funded accounts, traders can achieve the same dollar return with less risk [5] Industry Context and Validation - The funded account model has been successful in FX and futures for over a decade, demonstrating its viability [4] - Top traders on the platform have generated substantial profits, indicating the potential of the product [4] - The company emphasizes that its product is not a scam, highlighting its acquisition by Kraken after due diligence [4]

Are you even a degen if you’ve never said ‘one more leverage’ before liquidation? https://t.co/kagEdmfWa5 ...

"For every ETH that’s sitting on an exchange there’s another ETH of leverage in the market. So you basically got twice as much long exposure than there is of actual ETH collateral.”- Michael Nadeau ( @JustDeauIt ) from @the_defi_reportWe have never seen that in previous cycles and that's how you get these crazy liquidations.Massive DATs like $BMNR, $SBET and $BTBT are giving traders a lot of confidence to put on leverage.Most of that story is behind us.Now what's going to be the next catalyst that takes us ...

Hyperliquid trading volume before and after latest liquidation event paints sobering picture for traders https://t.co/Uo5C8jK0Vx ...

After a $19B liquidation week, the question remains, bottom or bounce❓🎙️ @Dentoshi & @matthewbarby break it down in our Trading Spaces recap.🎧 Blog & highlights here:https://t.co/FwnqqcZ2bz ...

To avoid liquidation, Machi(@machibigbrother) deposited another 105K $USDC into #Hyperliquid — and he's still adding to his $ETH long.Position: 2,600 $ETH($10.02M)New Liquidation Price: $3,803.71https://t.co/2iUTdMaBI2 https://t.co/kNIwLW9M3JLookonchain (@lookonchain):Machi Big Brother(@machibigbrother) deposited another 100K $USDC to #Hyperliquid, continuing his long position on $ETH!Position: 2,575 $ETH($10.14M)Liq. Price: $3,843.56https://t.co/5Z4v0HJcNo https://t.co/YxlsMr4gdQ ...