🚨 JUST IN:$15 BILLION Bitcoin shorts to be liquidated if Bitcoin rallies 10% to a new ATH 👀 https://t.co/ar5nuKnf4h ...

⚡️ ALERT: $330M liquidated in the past 12 hours, $254M from shorts. https://t.co/rxvF1BURoA ...

🚨 ALERT: $330M liquidated in the past 12 hours, $254M from longs. https://t.co/JRoRrYv6lH ...

Market Dynamics - Over $165 million in short positions were liquidated in the past 4 hours [1]

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 ...