Chip Slump Wipes Out $800M in Crypto Leveraged Bets

Crypto exchanges liquidated approximately $803 million in leveraged positions over a 24-hour period, with bullish bets accounting for 86% of the losses as Bitcoin briefly fell below $81,000, according to CoinDesk. The data, compiled by CoinGlass across 10 exchanges, showed that 172,113 traders were hit, with long positions making up $694 million of the total.

Semiconductor Stock Bets Outpace XRP

A notable shift in crypto derivatives activity involved tokenized stock contracts. Perpetual futures tracking U.S. memory-chip maker SanDisk recorded $19.09 million in liquidations, surpassing XRP liquidations of $18.78 million. Additional liquidations hit perpetual futures tracking SK Hynix, Micron, and the triple-leveraged U.S. semiconductor ETF SOXL, which saw $7.21 million liquidated. These losses aligned with a broader selloff in Seoul as South Korea's KOSPI fell more than 6%, and Samsung Electronics and SK Hynix each dropped about 8% amid AI valuation concerns.

Market Rebound and Short Liquidation Shift

The market dynamic shifted as Bitcoin recovered above $83,000. Over a subsequent four-hour window, $74 million in positions were liquidated, with short positions accounting for 79% or $59 million of those losses. Binance accounted for half of all liquidations during the broader 24-hour window, which included $181 million for Bitcoin, $178 million for Ether, and $60 million for Solana.

Key facts

• Crypto exchanges liquidated about $803 million in leveraged positions over 24 hours.
• Long positions accounted for $694 million, or 86%, of the total liquidations.
• SanDisk perpetual futures recorded $19.09 million in liquidations, surpassing XRP.
• About $595 million of the total was liquidated in the final 12 hours as Bitcoin fell below $81,000.
• Following a rebound above $83,000, short positions accounted for 79% of $74 million in subsequent liquidations.