Liquidations Triple This Cycle — SEC Moves to Cool Down Crypto Leverage

[bonk]

Data from Glassnode shows crypto liquidations have nearly tripled this market cycle.
Last cycle:

$28M/day long liquidations

$15M/day short liquidations

This cycle:

$68M/day in longs

$45M/day in shorts

As leverage builds, risk compounds—and so does volatility.
SEC regulators are now pushing back, warning ETF issuers that the leverage arms race won’t continue unchecked. Their goal: protect investors before the next liquidation cascade hits.

[Nahid Hossen]

Triple liquidations show how overheated leverage had become.

[Abdul Khan]

SEC intervention was inevitable given the volatility spike.