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Liquidation

Liquidation occurs when a trader’s collateral is no longer sufficient to cover their leveraged position’s losses, triggering an automated forced closure by the exchange's liquidation engine. It is a critical risk-management mechanism that ensures the solvency of lending protocols and derivative platforms. In 2026, the focus has moved toward MEV-resistant liquidation models that protect users from predatory "cascades." This tag provides essential information on maintenance margins, health factors, and how to avoid liquidation in high-volatility environments.

14367 Articles
Created: 2026/02/02 18:52
Updated: 2026/02/02 18:52
Bitcoin Price Holds at $111k, Are the Bears Eyeing at $93k?

Bitcoin Price Holds at $111k, Are the Bears Eyeing at $93k?

The post Bitcoin Price Holds at $111k, Are the Bears Eyeing at $93k? appeared first on Coinpedia Fintech News Bitcoin’s price has slipped to around $111,000, down 1.39% over the past 24 hours. This is with the market cap at $2.21 trillion and trading volume off 8.28%. BTC is testing critical support levels after failing to hold its 7-day and 30-day SMAs. Thereby, raising the risk of accelerated selling pressure.  While the current 11.4% …

Author: CoinPedia

2025/08/29

USDT Is Coming To Bitcoin: Tether Unveils Launch Via RGB

USDT Is Coming To Bitcoin: Tether Unveils Launch Via RGB

Tether has announced USDT is set to see a launch on Bitcoin’s RGB protocol, allowing users to hold BTC and the stablecoin in the same wallet. Bitcoin Users Will Have Native Access To USDT Via RGB Protocol As revealed by Tether in a website announcement, its stablecoin USDT will be coming to the RGB protocol. […]

Author: Bitcoinist

2025/08/29

Pepe Price Prediction; BONK Coin Latest News & Why Top Crypto Presale Remittix Is Stealing The Show

Pepe Price Prediction; BONK Coin Latest News & Why Top Crypto Presale Remittix Is Stealing The Show

Pepe price prediction for the remainder of 2025 remains mixed amid last week’s crypto scare, triggered by a Bitcoin whale dumping 24,000 BTC and causing $940 million in liquidations.  Investors are taking note and now favor altcoins with tangible payment solutions over hype-driven assets that are prone to market manipulation.  These emerging Payfi tokens like

Author: Coinstats

2025/08/29

Master the Dexlyn Perps Testnet Before the Real Game Begins

Master the Dexlyn Perps Testnet Before the Real Game Begins

Dexlyn Perpetuals Testnet is going live this Thursday, July 24. If you’ve been waiting to test out leveraged trades on Dexlyn, now’s the time to jump in. The testnet is your playground. Long or short. Win or lose. You can get a feel for the interface, get used to the flow, and figure out your strategy. This matters more than ever because Trading Game Season 2 is just around the corner, and it will also launch on Testnet. Once that goes live, every trade you make on perps will count toward your points tally. And every point will turn into $DXLYN tokens. So if you’re here for the trading game or just want to get good at perps before the competition heats up, this is your starting line. Trading Game Season 2 will change everything The Dexlyn Trading Game Season 2 is coming soon on Testnet after the Perps Testnet. This time, it’s going to be bigger, better, and way more rewarding. In Season 2, your goal is simple: rack up as many points as possible through real on-chain activity. That includes swaps, LP actions, and now, perpetuals trading. But here’s the twist with perps. Every position you close on the Dexlyn Perpetuals platform will earn you points. Whether you close a long or a short doesn’t matter. Whether it’s 5x or 150x leverage doesn’t matter. Every user earns the same base points for completing the action. And on top of that, if your trade is profitable, you get extra points depending on how much you made. The Perps Point System Explained Let’s break it down. Every closed position (long or short) earns you 25 base points. This is fixed for everyone. But if you close the position in profit, the system rewards you based on how much you earned as a percentage of your entry. Here’s the full point breakdown: So for example, if you close a long position with 120% profit: You get the base 25 points You get a bonus of 200 points Total = 225 points for one position If you close a short trade with 0% profit (breakeven), you’ll get only 25 points. No bonus. The system is simple. Reward skill, not size. You don’t need a huge bankroll. You just need smart trades. How The Points Convert to $DXLYN Points in the Dexlyn Trading Game aren’t just for show. They represent your contribution, your trades, and your strategy across the Perpetuals Testnet. And once the TGE (Token Generation Event) is live, those points will be used to calculate how much $DXLYN you’ll be able to claim. But it’s not a flat 1:1 conversion. The total $DXLYN allocation for the Perpetuals Testnet is capped at 200,000 tokens. Your share of that pool will be calculated based on how many points you earned relative to the total points accumulated by everyone. Let’s say the community collectively racks up 100,000 points, and you earned 1,000 points. That’s 1% of the total. You’d receive 1% of the 200,000 tokens, which is 2,000 $DXLYN. The higher your point total, the bigger your slice. These tokens will show up in your dashboard and can be claimed after the TGE goes live. Until then, your job is simple: keep stacking points and grow your share. Why It Pays to Start Early The Perps Testnet is more than just a warm-up. It’s your chance to lock in your edge. The Testnet lets you: Get used to the interface Learn how to open and close positions Understand how PnL tracking and margin requirements work See where your stop-loss and liquidation risks show up Practice trades without any pressure By the time Trading Game Season 2 Testnet goes live, you won’t be wasting time figuring things out. You’ll be ready to trade, rack up points, and climb the leaderboard from day one. It’s the same platform. Same mechanics. Same contracts. Just no points yet. Think of this as your dry run. Your rehearsal before the main event. Quick Recap Dexlyn Perpetuals Testnet goes live on July 24 You can trade long or short with no risk and full access to the platform Use this to prepare for Trading Game Season 2, which will also begin on Testnet Once the game begins, every closed trade earns you 25 base points You earn more points if your trade is profitable, based on profit percentage No points can be earned before the game starts So this week is your chance to gear up. Try trades. Make mistakes. Sharpen your edge. Then when the points are live, go make them count. Originally published at https://blog.dexlyn.com on July 24, 2025. Master the Dexlyn Perps Testnet Before the Real Game Begins was originally published in Coinmonks on Medium, where people are continuing the conversation by highlighting and responding to this story

Author: Medium

2025/08/29

Jupiter [JUP] surges amid 62% daily volume spike – Can bulls hold?

Jupiter [JUP] surges amid 62% daily volume spike – Can bulls hold?

The liquidation map highlighted the $0.542-$0.548 area as a zone of interest for a bearish reversal despite the positive online engagement.

Author: Coinstats

2025/08/29

Ethereum Price Forecast: ETF inflows blow past $4 billion as whales accumulate 1.44 million ETH in August

Ethereum Price Forecast: ETF inflows blow past $4 billion as whales accumulate 1.44 million ETH in August

Ethereum (ETH) remained muted near $4,500 on Thursday despite sustained accumulation from institutional investors and whales over the past few days.

Author: Fxstreet

2025/08/29

XRP Rockets 1,181% in Hourly Liquidation Imbalance as Price Reclaims $3

XRP Rockets 1,181% in Hourly Liquidation Imbalance as Price Reclaims $3

The post XRP Rockets 1,181% in Hourly Liquidation Imbalance as Price Reclaims $3 appeared on BitcoinEthereumNews.com. XRP is one of the most-watched altcoins on the crypto market, especially at a time when the industry is undergoing intense consolidation. In earlier trading sessions, the XRP price reclaimed the $3 price mark amid a mile rebound, triggering an unusual shift in the coin’s liquidation imbalance. XRP price and liquidation divergence It is worth noting that XRP has showcased different outlooks on a variety of timelines. While the coin has a marginal growth rate of 0.67% in the past 24 hours to $3.017, on lower time frames, it has dropped considerably. You Might Also Like This has created a shift in the liquidation amount in the past four hours. CoinGlass data shows that long traders recorded only a minor loss of $16,570 as of press time. In contrast, short traders faced a loss of $212,290.  While these figures appear small, the imbalance of 1,181% within this time span paints a clearer picture of the market outlook. There are a lot of projections for the XRP price in both the short and long term. The growing embrace of the RLUSD stablecoin has even created more liquidity for XRP on the XRPL. With the Ripple stablecoin entering the top 100 asset list by market capitalization, the broader ecosystem has continued to expand. XRP to reclaim ATH? The price of XRP has maintained a frantic push to reclaim the all-time high of $3.84 it achieved in 2018. Although the coin currently maintains a positive trading volume of $6.87 billion, buying momentum appears to have slowed down. You Might Also Like Every form of legal uncertainty around the coin has been removed, paving the way for direct engagement with institutional investors. In light of this, the push for a spot XRP ETF product has continued to grow, with asset managers like Bitwise and Grayscale spearheading the push.…

Author: BitcoinEthereumNews

2025/08/29

Hyperliquid's XPL short squeeze reveals the structural risks of pre-market trading

Hyperliquid's XPL short squeeze reveals the structural risks of pre-market trading

How whales exploited the right timing, location, and people in $XPL's pre-market trading on Hyperliquid to profit from it—that is, early holders hedged their positions by shorting, thus forming a "crowded trade" that was ultimately detonated by an "ignition strategy"—is not a random market fluctuation, but a systemic risk stemming from the structural flaws of the pre-market market. The story begins with Aunt AI ’s tweet: original: https://x.com/ai_9684xtpa/status/1960506447965642864 This article doesn't examine the context of the XPL incident, but rather discusses some structural and systemic risks in the pre-market trading market. While every model has its advantages and disadvantages, this isn't about right or wrong; this article aims to highlight these risks and their underlying causes. Section 1: A New Paradigm: Pre-Market Trading Pre-market trading (more accurately, "pre-launch trading") essentially creates a synthetic market for a token that hasn't yet been issued or publicly circulated. This isn't a reaction to information about existing assets, but rather a pure price discovery process for future assets. The underlying asset isn't the token itself, but rather a futures contract, which can be spot, over-the-counter, or perpetual. This shift in mechanisms fundamentally alters the nature of risk. While the primary risks of traditional pre-market trading are insufficient liquidity and increased volatility, the existence and fundamental value of the asset remain unquestioned. However, the cryptocurrency pre-market introduces new risk dimensions: first, settlement or conversion risk. This involves the possibility that the project may never issue its tokens, preventing the market from converting to a standard spot or perpetual contract market and ultimately leading to suspension or delisting. Secondly, there's the risk of price anchoring. Without an external spot market to serve as a price reference, market prices are entirely determined by buying and selling activity within the platform, forming a self-referential closed loop that makes the market more susceptible to manipulation. Therefore, the innovation of pre-market cryptocurrency trading lies in creating a market out of thin air, but at the cost of creating a structurally more fragile trading environment with a more diverse range of risks. It’s not that everyone is unaware of this risk, but exchanges can obtain traffic, market makers can achieve “price discovery” in advance, and project parties/early investors can “hedge risks” - under the premise of multiple parties making profits, everyone acquiesces to this arrangement (risk). Section 2: DEX hedging is like walking on a tightrope with a double-edged sword 2.1 Rational Hedgers: Why Early Holders Short Pre-Market Futures to Lock in Value Before a new token's TGE (Tentative General Equity), early holders (including private investors, team members, and airdrop recipients) face a common dilemma: they hold tokens or token claims that are not yet circulated and tradable, exposing the future value of these assets to significant market uncertainty. Once the token goes public, its price could be far lower than expected, significantly reducing their paper wealth. The pre-market futures market offers a near-perfect solution to this dilemma. By shorting an equivalent amount of perpetual swaps in the pre-market, holders can lock in the future selling price of their tokens in advance. For example, if a user expects to receive 10,000 airdrop tokens and the futures price of the token is $3 in the pre-market, they can hedge their risk by shorting 10,000 contracts. Regardless of the spot price at the time of the TGE, their total profit will be locked in at approximately $30,000 (ignoring transaction costs and basis). This operation essentially creates a delta-neutral position: the risk of the long spot position (holding the pending airdrop) is offset by the short futures position (shorting the perpetual swap). For any rational risk-averse person, this is a standard and sensible financial strategy. 2.2 The formation of a crowded trade: when collective hedging creates concentrated vulnerability When a large number of market participants trade at the same time, using the same strategy and based on similar logic, "crowded trade" arises. This risk stems not from asset fundamentals (exogenous risk) but from the high correlation between market participants' behavior, making it an endogenous risk. If you have watched the ALPACA episode before, you will know that this operation is a "market consensus" - where there is market consensus, there is direction; where there is direction, there are opportunities; where there are opportunities, there is speculation. This crowding phenomenon is structural and predictable in the pre-market. The nature of airdrops and early token distributions creates a large, homogeneous group (i.e., token recipients) who, at the same point in time (pre-TGE), face the same exact risk exposure and have the same anticipatory motivation (shorting). Meanwhile, the group of speculators willing to take the risk and buy these futures contracts is relatively small and dispersed. This natural imbalance between long and short positions inevitably leads to extreme market crowding on the short side, creating a classic case of a crowded short. The greatest danger of a crowded trade lies in its fragility. With the vast majority of investors on the same side of the boat, once a catalyst forces them to close their positions (such as an adverse price movement), there will be a shortage of counterparties in the market to absorb these closing orders. This triggers a stampede-like "escape from the exits," leading to extreme, drastic, one-way price movements. For crowded short positions, this stampede manifests as a devastating short squeeze. This hedging tool, originally intended for risk management, has, through its collective use, instead created a new and greater source of systemic risk. 2.3 Identifying Imbalances: Detecting Crowding Through Data Analysis While an individual trader cannot know exactly how many people hold the same position as him or her, by analyzing publicly available market data, it is possible to effectively identify signs of crowded trading. Open Interest (OI) Analysis : OI is a key indicator measuring the total number of open derivatives contracts in the market, reflecting the amount of capital flowing into the market and market participation. In the pre-market, if OI rises continuously and rapidly while prices stagnate or even decline slightly, it is a strong signal that a large amount of capital is pouring into short positions, forming a bearish consensus and a short crowd is forming. On-chain data analysis : Although the tokens are not yet in circulation, analysts can track airdrop-related activity using blockchain explorers. By analyzing the number of wallets eligible for the airdrop, the concentration of token distribution, and the historical behavior of these wallets, it is possible to roughly estimate the total amount of "spot" positions that may require hedging. A large and dispersed airdrop often indicates stronger hedging demand and higher congestion risk. Funding Rates and Spreads : On platforms with funding rates like Hyperliquid, persistently negative and deepening funding rates are direct evidence of short-term dominance. On platforms like Aevo, while lacking funding rates, widening bid-ask spreads and order book depth on the sell side significantly exceeding the buy side can also indicate unilateral selling pressure. This series of analyses reveals a profound phenomenon: "crowded hedging" in the pre-market isn't an accident of market failure, but rather an inevitable product of systemic design. The airdrop mechanism creates a large, aligned group of traders, and the pre-market provides them with a perfect hedging tool. Individually rational behavior (hedging risk) converges into a collectively irrational state (an extremely vulnerable, crowded position). This vulnerability is predictable, systematically concentrating a large number of risk-averse traders, creating a perfect prey pool for predators who understand and are able to exploit this structural flaw. A short squeeze/long squeeze does not require a reason, a narrative, or a purpose. Instead, when funds reach a certain level, they will attract whales and gambling — the contract version of a crime of holding a treasure. Section 3: Ignition Moment: Exploiting Crowded Transactions and Triggering Chain Liquidations 3.1 Momentum Ignition: A Mechanism of Predatory Trading Strategies Momentum ignition is a complex market manipulation strategy typically executed by high-frequency traders or large trading funds. Its core objective is not based on fundamental analysis, but rather on creating artificial unilateral price momentum through a series of rapid, aggressive trades. The goal is to trigger pre-set stop-loss orders or forced liquidation levels in the market, and then profit from the resulting chain reaction. The execution of this strategy usually follows a precise "attack sequence": Probing and preparation: The attacker will first test the market's liquidity depth by submitting a series of small, rapid orders to create the illusion of growing demand. Aggressive order placement: After confirming that the market depth is insufficient, the attacker will flood the order book with a large number of market buy orders in a very short period of time. The goal of this stage is to quickly and violently drive up the price. Triggering a chain reaction: The sharp rise in price hits the forced liquidation price for a large number of crowded short positions. Once the first liquidation is triggered, the exchange’s risk engine automatically executes a market buy order to close the short position, further pushing up the price. Profit-taking: The initial attackers had already built up a large number of long positions in phases 1 and 2. When the cascading liquidations began and a large amount of passive buying flooded the market, the attackers began to reverse course, selling their long positions to these forced liquidation buyers, thereby realizing profits at the inflated prices they had created. 3.2 Perfect Prey: How Illiquidity and Short Crowd Create an Ideal Attack Environment The pre-market provides a near-perfect breeding ground for implementing a momentum ignition strategy. Extremely Low Liquidity: As mentioned previously, the pre-market market is extremely illiquid. This means attackers can significantly impact prices with relatively little capital. Manipulation that would be costly in liquid, mature markets becomes inexpensive and efficient in the pre-market. Predictable Liquidation Clusters: Because a large number of hedgers use similar entry prices and leverage, their forced liquidation prices are densely distributed within a narrow range above the market price. This creates a clear and predictable "liquidation cluster." Attackers know that they only need to push the price up to this area to trigger a chain reaction. This is consistent with the "stop-loss hunting" behavior in traditional markets, where attackers specifically target known areas with concentrated stop-loss orders. (via liquidation map) One-sided market structure: Crowded shorts mean that during price increases, there is little natural buying power to absorb attacker selling pressure. Prices can rise effortlessly until they hit the "wall" of liquidation clusters. Once there, passive liquidation buying becomes the "fuel" that drives prices further up. 3.3 Disintegration: From Targeted Elimination to Comprehensive Chain Liquidation The whole process was a carefully planned, staged disintegration. Short Squeeze: The initial price surge triggered by the momentum ignition strategy triggers the liquidation of the first batch of the most leveraged and vulnerable short positions. The buying generated by these forced liquidations further pushes prices higher, forming a classic short squeeze. Cascading liquidations: Prices, driven high by the first round of short squeezes, now reach the liquidation levels for the second and third tranches of short positions. This creates a vicious positive feedback loop: liquidations lead to higher prices, which in turn trigger more liquidations. The market spirals out of control, with prices rising vertically in a very short period of time, forming the long upper shadow candlesticks commonly seen on charts, known as "liar candlesticks." The ultimate outcome: For early holders seeking to hedge, the outcome is a "margin call"—margin depleted, hedged positions forced to close, and significant financial losses. Not only do they lose the "insurance" they established to protect the spot value, but they also pay a heavy price for it. When the cascading liquidation exhausts all available short positions and the attackers complete their profit-taking, the price often quickly falls back to its initial level, leaving a devastating mess in their wake. From a deeper analysis, the momentum ignition strategy in the pre-market market has gone beyond the scope of simple market manipulation, or it is not market manipulation at all, but more like a game between funds. It's a form of structural arbitrage based on flaws in market microstructure. Attackers exploit publicly available information (airdrop size), platform design (leverage mechanisms), and predictable group behavior (collective hedging). By calculating the cost of the attack (the funds required to drive up prices in a low-liquidity market) and the potential reward (profits after triggering a liquidation cluster), they execute a near-deterministic game. Their profits come not from accurate judgments about asset value, but from the precise exploitation and amplification of market failures. Know the fact and why it is so May we always maintain a sense of awe for the market.

Author: PANews

2025/08/29

Cardano Futures Hit Record Volume

Cardano Futures Hit Record Volume

The post Cardano Futures Hit Record Volume appeared on BitcoinEthereumNews.com. Crypto News Cardano futures trading volume just hit record highs. Analysts weigh in on whether this signals a major price shift and what it means for ADA investors. Cardano is back in focus after futures trading volume jumped to $6.96 billion, the highest in five months. The spike points to deeper liquidity and stronger trader interest, a setup that often leads to sharp moves. At the time shown in your screenshots, ADA trades at $0.8450 with a market cap of $30.16 billion and a 1‑year gain of 150.96%. Technically, ADA has been coiling in a triangle and pressing higher. If momentum holds, a clean move through $1 could open room toward $1.10 in the near term. Derivative activity like this tends to magnify volatility. A push over $0.90-$0.92 keeps bulls in control, while $0.80-$0.82 is the first support zone traders will watch if price cools. Investors hunting early catalysts are also scanning presales that are heating up. One name on that radar is MAGACOIN FINANCE, which some traders are watching as a high‑demand allocation play during this altcoin rotation. What the futures surge could mean next The combination of rising volume and a tightening pattern often precedes decisive moves. Here are the near‑term scenarios many desks will map out: Bull case: break and hold above $1, then extend toward $1.05-$1.10 on momentum and fresh inflows. Base case: chop between $0.82 and $0.98 as open interest resets and funding normalizes. Bear case: lose $0.80 on heavy long liquidations, probing $0.74-$0.76 liquidity pockets before rebuilding. Spotlight on This New Altcoin Contender With presale demand ramping up across the market, MAGACOIN FINANCE is seeing accelerating interest. The countdown is live and the opportunity is slipping away with the limited supply being sold out at record pace before the next pump phase begins, creating…

Author: BitcoinEthereumNews

2025/08/29

Cardano Futures Hit Record Volume — Is a Major Price Shift Coming?

Cardano Futures Hit Record Volume — Is a Major Price Shift Coming?

Cardano is back in focus after futures trading volume jumped to $6.96 billion, the highest in five months. The spike […] The post Cardano Futures Hit Record Volume — Is a Major Price Shift Coming? appeared first on Coindoo.

Author: Coindoo

2025/08/29

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