Massive Leverage Liquidated After Sunday Flash Crash

[AIcash]

Analysts, including the Kobeissi Letter, linked the sharp decline to a surge in selling volume and a cascade of liquidations fueled by historically high leverage across the market. Over 180,000 traders were wiped out in 24 hours, with $539 million in liquidations — nearly 90% were long positions on BTC and ETH. The incident reinforces a recurring theme of 2025: markets remain extremely sensitive to liquidity shocks during off-hours.

[Nahid Hossen]

The flash crash wiped out overleveraged positions instantly.

[Abdul Khan]

Leverage cleansing like this often resets the market for healthier moves.