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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.

15275 Articles
Created: 2026/02/02 18:52
Updated: 2026/02/02 18:52
K33 Research Director: Large-scale leverage liquidation is conducive to Bitcoin asset accumulation

K33 Research Director: Large-scale leverage liquidation is conducive to Bitcoin asset accumulation

PANews reported on October 15 that according to CoinDesk, Vetle Lunde, head of research at K33, pointed out that although the rebound after last week's flash crash lost momentum on Tuesday, the current decline is a constructive setup and Bitcoin has stabilized after a major leverage reset. In his report on Tuesday, he said that after the recent leverage liquidation, he is constructively optimistic about BTC, but he must remain patient. He pointed out that traders are recovering from forced selling and short-term liquidity may remain low, but such leverage liquidations often mean that the market has bottomed out. He also said: "The current price is very attractive and suitable for increasing BTC spot positions because leverage has been largely cleared. Coupled with a favorable background including expectations of loose policies, high institutional demand and ETF-related catalysts, the current situation is conducive to the gradual accumulation of Bitcoin."

Author: PANews

2025/10/15

Lighter will issue 250,000 points to compensate traders affected by the market crash

Lighter will issue 250,000 points to compensate traders affected by the market crash

PANews reported on October 15th that Lighter officially announced a special bonus of 250,000 points to compensate traders affected by last week's market crash. The second quarter of the bonus will be distributed every Friday starting October 17th, with the first installment of 600,000 points covering the past 2.5 weeks. Affected users fall into three categories, with the platform taking full responsibility: First, a performance degradation of the trading platform occurred in the hours before the market crash, resulting in a total loss of approximately $25 million for traders. The platform will compensate them with 150,000 points and a refund of liquidation fees. Second, during the market crash, although the system functioned normally, LLP holders suffered a loss of approximately 5%. The platform partially accepted responsibility, clarified its LLP operations, and compensated LLP holders with 25,000 points. Third, a database failure after the market calmed down, which caused Lighter to shut down for 4.5 hours, resulted in a total loss of $7 million for traders. The platform will compensate them with 75,000 points and a refund of liquidation fees.

Author: PANews

2025/10/15

Historic Liquidation Event Highlights Solana Resilience Against Ethereum, Which Is Leading?

Historic Liquidation Event Highlights Solana Resilience Against Ethereum, Which Is Leading?

The sudden and violent market correction triggered by geopolitical shockwaves served as an unprecedented stress test for the entire cryptocurrency ecosystem, exposing critical differences in network architecture. While the multi-billion-dollar liquidation event sent prices plunging across the board, Solana demonstrated remarkable resilience, whereas the Ethereum network and liquidity thinned during the peak volatility. Why Solana High-Performance Design Continues To Shine In an X post, the Nasdaq-listed go-to Solana Digital Asset Treasury (DAT), DefDevCorp, has revealed that when the largest liquidation event in crypto history hit last Friday, most of the market froze, and Ethereum stumbled. However, Solana didn’t flinch, powering through one of the most chaotic trading sessions ever recorded. Related Reading: Solana Shines Bright: Network Excels Amid Largest Crypto Liquidation Event At the peak of volatility, Solana sustained 1,225 transactions per second, finalized blocks in just 350 milliseconds, and saw transaction fees briefly rise to $0.25 before normalizing below $0.01. Meanwhile, ETH’s infrastructure buckled under demand as the network struggled to process beyond 26 TPS. Its block times extended to 15 seconds, and saw average gas fees explode to $616, effectively locking out users and rendering the chain unusable during the crisis. ETH became unreliable, impractical, and effectively unusable during the chaos. As DefiDevCorp noted, when users are priced out and transactions can’t clear, the network might as well be offline. In moments of high load, the core promise of a blockchain to remain accessible, affordable, and reliable must hold. However, after nearly 20 months of uninterrupted uptime, weathering its busiest moments, it’s abundantly clear that SOL’s continued upgrades and optimizations have paid off dramatically.  DefiDevCorp concluded that no other chain currently comes close to handling global value transfer at this scale, under such extreme conditions, with the same level of performance. The takeaway from the firm’s post is that only SOL stays fast, cheap, and usable, even when global markets melt down. Why SOL Price Doesn’t Match Its Reliability A Researcher at alphapleaseHQ and Advisor at KaminoFinance, Aylo, has also mentioned that he had assets and Decentralized Finance (DeFi) positions open on both Solana and Ethereum when the crypto market collapsed last Friday. During this time, he had zero issues using the SOL network, while the ETH network was unusable due to the costs, which often led to market crashes, and the Rabby wallet also went down. Related Reading: No Chain Comes Close: Solana Leads With 2.5x Ethereum’s Revenue Aylo added that the ETH maxis should be much angrier about the performance of their L1. With this development, SOL continues to prove it’s the most performant and reliable blockchain under real-world pressure that we have in crypto. He pointed out that SOL’s valuation doesn’t reflect the resilience it is proving in the digital world. Featured image from Adobe Stock, chart from Tradingview.com

Author: NewsBTC

2025/10/15

Bitcoin Could Remain a Debasement Hedge After Flash Crash as Gold Hits Record High

Bitcoin Could Remain a Debasement Hedge After Flash Crash as Gold Hits Record High

The post Bitcoin Could Remain a Debasement Hedge After Flash Crash as Gold Hits Record High appeared on BitcoinEthereumNews.com. COINOTAG recommends • Exchange signup 💹 Trade with pro tools Fast execution, robust charts, clean risk controls. 👉 Open account → COINOTAG recommends • Exchange signup 🚀 Smooth orders, clear control Advanced order types and market depth in one view. 👉 Create account → COINOTAG recommends • Exchange signup 📈 Clarity in volatile markets Plan entries & exits, manage positions with discipline. 👉 Sign up → COINOTAG recommends • Exchange signup ⚡ Speed, depth, reliability Execute confidently when timing matters. 👉 Open account → COINOTAG recommends • Exchange signup 🧭 A focused workflow for traders Alerts, watchlists, and a repeatable process. 👉 Get started → COINOTAG recommends • Exchange signup ✅ Data‑driven decisions Focus on process—not noise. 👉 Sign up → Bitcoin can still function as a partial hedge against currency debasement, but its effectiveness is conditional on sustained low real interest rates and continued institutional demand. Gold’s record rally and last week’s crypto liquidation underscore that volatility and liquidity shocks can temporarily weaken the debasement trade. Bitcoin remains a conditional debasement hedge for investors seeking protection from currency debasement. Short-term volatility—driven by leverage and macro shocks—can produce sharp drawdowns even as the long-term structural case persists. Market data: over $19 billion of crypto futures were liquidated in a single session; Bitcoin dipped below $110,000 then recovered to roughly $113,494 (CoinGecko); gold reached $4,099/oz. Bitcoin hedge against currency debasement: analysis of gold’s surge, crypto liquidations, and expert views—read how traders can position now. Published by COINOTAG. Is Bitcoin a hedge against currency debasement? Bitcoin as a hedge against currency debasement can be effective when real interest rates remain low and monetary expansion persists. Although Bitcoin has historically responded positively to expansionary monetary policy, short-term liquidity events and heavy leverage can produce dramatic price swings that temporarily undermine its hedge properties.…

Author: BitcoinEthereumNews

2025/10/15

Celsius Wins $300M From Tether in Bankruptcy Ruling, Far Below $4.3B Claim

Celsius Wins $300M From Tether in Bankruptcy Ruling, Far Below $4.3B Claim

Celsius Network’s bankruptcy estate has secured nearly $300 million from Tether after a United States court approved a settlement that ends their long-running legal fight. The agreement brings closure to one of the most significant disputes in Celsius’s bankruptcy proceedings. However, it covers only a fraction of the $4.3 billion the company originally sought. The Blockchain Recovery Investment Consortium (BRIC), which now oversees Celsius’s restructuring, announced the settlement. The move marks a major step toward completing the firm’s recovery process. BRIC, a joint venture between VanEck and GXD Labs, described the resolution as a significant milestone in closing Celsius’s bankruptcy chapter. Executives React to Settlement GXD Labs managing partner David Proman confirmed that the settlement resolves all claims between Celsius and Tether. He noted that the decision allows BRIC to focus on returning value to creditors without further litigation. Tether shared a similar view. In a post on X, CEO Paolo Ardoino said Tether was satisfied to have settled all matters linked to the Celsius bankruptcy. Tether is pleased to have reached a settlement of all issues related to the Celsius bankruptcy. — Paolo Ardoino 🤖 (@paoloardoino) October 14, 2025 Celsius vs. Tether Celsius filed for bankruptcy in July 2022 after revealing a $1.2 billion shortfall in its balance sheet. The company exited bankruptcy protection in November 2023 under BRIC’s management. BRIC was tasked with recovering illiquid assets and resolving pending lawsuits on behalf of creditors. Following its restructuring, Celsius filed a case in the U.S. Bankruptcy Court for the Southern District of New York in August 2024. The company accused Tether of liquidating 39,542 bitcoins before a mandatory 10-hour waiting period expired. The firm claimed the early liquidation deprived it of billions of dollars in potential recovery value. Subsequently, Judge Martin Glenn allowed Celsius to proceed with most of its claims in July 2025. The decision led to settlement talks that produced the $299.5 million agreement. The payout represents roughly 7% of the damages Celsius had originally sought. The post Celsius Wins $300M From Tether in Bankruptcy Ruling, Far Below $4.3B Claim appeared first on CoinTab News.

Author: Coinstats

2025/10/15

Shiba Inu May Remain Under Pressure After Flash Crash as XRP Death Cross Suggests Broader Altcoin Weakness

Shiba Inu May Remain Under Pressure After Flash Crash as XRP Death Cross Suggests Broader Altcoin Weakness

The post Shiba Inu May Remain Under Pressure After Flash Crash as XRP Death Cross Suggests Broader Altcoin Weakness appeared on BitcoinEthereumNews.com. COINOTAG recommends • Exchange signup 💹 Trade with pro tools Fast execution, robust charts, clean risk controls. 👉 Open account → COINOTAG recommends • Exchange signup 🚀 Smooth orders, clear control Advanced order types and market depth in one view. 👉 Create account → COINOTAG recommends • Exchange signup 📈 Clarity in volatile markets Plan entries & exits, manage positions with discipline. 👉 Sign up → COINOTAG recommends • Exchange signup ⚡ Speed, depth, reliability Execute confidently when timing matters. 👉 Open account → COINOTAG recommends • Exchange signup 🧭 A focused workflow for traders Alerts, watchlists, and a repeatable process. 👉 Get started → COINOTAG recommends • Exchange signup ✅ Data‑driven decisions Focus on process—not noise. 👉 Sign up → Shiba Inu declined sharply during last week’s market flash crash, falling to $0.0000085 before a partial recovery. The sell-off was driven by broad crypto liquidations, thinning altcoin liquidity and a breach of the key $0.000010 support, leaving SHIB vulnerable until market depth improves. Shiba Inu plunged to $0.0000085 and broke key $0.000010 support. XRP registered a bearish death cross versus Bitcoin, trading near 0.00002247 BTC. DOGE rallied ~13% after a short squeeze erased roughly $436 million in open short positions. Shiba Inu decline saw SHIB drop to $0.0000085 after mass liquidations; read the latest market update and recovery outlook from COINOTAG. Publication date: 2025-10-14 | Updated: 2025-10-14 | Author: COINOTAG COINOTAG recommends • Professional traders group 💎 Join a professional trading community Work with senior traders, research‑backed setups, and risk‑first frameworks. 👉 Join the group → COINOTAG recommends • Professional traders group 📊 Transparent performance, real process Spot strategies with documented months of triple‑digit runs during strong trends; futures plans use defined R:R and sizing. 👉 Get access → COINOTAG recommends • Professional traders group 🧭 Research → Plan…

Author: BitcoinEthereumNews

2025/10/15

Bitcoin Handles $14B OI Drop As Spot Volume Surged To $44B: Controlled Reset?

Bitcoin Handles $14B OI Drop As Spot Volume Surged To $44B: Controlled Reset?

The post Bitcoin Handles $14B OI Drop As Spot Volume Surged To $44B: Controlled Reset? appeared on BitcoinEthereumNews.com. Bitcoin is testing a critical support level near $110,000 after being rejected from the $116,000 supply zone, a level that has now become a major point of contention between bulls and bears. The market remains fragile following the historic volatility from Friday’s crash, which erased billions in leveraged positions and triggered widespread uncertainty. While the price has managed to stabilize above key moving averages for now, momentum appears to be weakening as buyers struggle to absorb continued selling pressure. Some analysts warn that if Bitcoin fails to hold this zone, a deeper correction toward the $105,000–$107,000 region could follow, marking another shakeout before a potential recovery. Top analyst Axel Adler shared new data shedding light on the magnitude of Friday’s event. According to his analysis, spot trading volume surged to $44 billion, nearing cycle highs, while futures volume hit $128 billion. More notably, open interest declined by $14 billion, yet only $1 billion of that was from BTC long liquidations. Adler explains this was a controlled deleveraging event, not a liquidation cascade — suggesting that market participants reduced risk manually rather than being forced out. Still, volatility remains elevated as Bitcoin fights to maintain structural support. A Controlled Reset Amid Growing Fear According to Axel Adler, the recent market crash revealed an important yet underappreciated aspect of Bitcoin’s maturity. Data shows that 93% of the $14 billion decline in open interest (OI) during Friday’s sell-off wasn’t forced — meaning it wasn’t the result of automatic liquidations. Instead, traders and institutions chose to reduce leverage manually, closing positions to protect capital. Adler describes this as a “controlled deleveraging”, a stark contrast to previous cycles where similar crashes often triggered chaotic cascades of liquidations. This behavior marks a turning point in Bitcoin’s market structure. It indicates that participants — especially institutional players…

Author: BitcoinEthereumNews

2025/10/15

‘Be Strong’: Michael Saylor Responds to $7 Billion Hit to Strategy’s Bitcoin Holdings

‘Be Strong’: Michael Saylor Responds to $7 Billion Hit to Strategy’s Bitcoin Holdings

The post ‘Be Strong’: Michael Saylor Responds to $7 Billion Hit to Strategy’s Bitcoin Holdings appeared on BitcoinEthereumNews.com. Michael Saylor is once again leaning into his trademark stoicism as Bitcoin slumped nearly $14,000 in less than a week, slicing around $7 billion off Strategy’s balance sheet. The billionaire executive posted an AI-generated photo from the mountains with the two-word motto “Be strong.” It is not clear whether Saylor addressed this message to himself or to his followers, but the numbers behind that post are brutal. Right now, Strategy sits on 640,250 BTC, purchased at an average of $74,002. For a moment in early October, those holdings looked untouchable, worth over $79 billion as Bitcoin punched above $124,000. But the reversal came quick. By Oct. 14, Bitcoin was hovering close to $110,800, knocking Strategy’s Bitcoin stash down to $71.1 billion in value — a 10% erosion in less than a week. Saylor & Co. still in green Despite the paper hit, the company’s position is still deeply in the green. The average cost basis of $47.38 billion means that Saylor is holding a profit of more than 50% on paper, even after the recent crash.  Yet the size of the swings underscores what many on Wall Street still question: how sustainable is a corporate balance sheet tied so tightly to Bitcoin’s volatility? For Saylor, that’s the point. He has repeatedly argued that Bitcoin is the world’s most resilient asset, immune to dilution and capable of outlasting fiat turbulence. This week’s pullback — the most painful in the history of crypto — triggered $19 billion liquidations across the market, but Saylor’s stance seems to remain unchanged. Source: https://u.today/be-strong-michael-saylor-responds-to-7-billion-hit-to-strategys-bitcoin-holdings

Author: BitcoinEthereumNews

2025/10/15

After the crypto market crash, are the stocks of DAT companies doing well?

After the crypto market crash, are the stocks of DAT companies doing well?

Author: David, TechFlow On the afternoon of the 10th, President Trump announced on Truth Social that he would impose a 100% tariff on Chinese goods. This news instantly triggered panic in global financial markets. Over the next 24 hours, the cryptocurrency market experienced its largest liquidation event in history, with over $19 billion in leveraged positions forced to close. Bitcoin plummeted from $117,000 to below $102,000, a daily drop of over 12%. The US stock market was also not immune to the disaster. At the close of trading on October 10, the S&P 500 fell 2.71%, the Dow Jones Industrial Average fell 878 points, and the Nasdaq Composite fell 3.58%, all marking their largest single-day declines since April. However, the real hard-hit areas are those DAT (Digital Asset Treasury) companies that use crypto assets as treasury reserves. MicroStrategy, the largest corporate Bitcoin holder, saw its stock price fall, while other crypto asset reserve companies saw even more significant drops. According to after-hours trading data, investors are still selling. For these companies exposed to both crypto and stock market risks, is the worst over? Why did DAT companies fall even harder? The first thing DAT companies have to face is a direct impact on their balance sheets. Take MicroStrategy, for example. The company holds approximately 639,835 Bitcoins. When the Bitcoin price drops by 12%, the value of its assets instantly evaporates by nearly $10 billion. Under accounting standards, this type of loss must be recorded as an "unrealized loss." Although it's not a true loss as long as the stock isn't sold, the figures in the financial statements are real. As an investor, you are seeing a company's core assets rapidly depreciating in value. There is also a multiplier effect on market confidence. At the beginning of 2025, MicroStrategy's stock was trading at a premium of 2 times its net asset value (NAV), but by the end of September it had compressed to 1.44 times; it is currently around 1.2. For some other companies, mNAV is almost returning to 1, and some have even fallen below 1. These changes in figures reflect a harsh reality: the market's confidence in the DAT model is being shaken in extreme market conditions. In a bull market, investors are willing to give these companies a premium, and the narrative can be that they are at the vanguard of crypto innovation. But when the market turns, the same narrative becomes unnecessary risk exposure. Non-Bitcoin cryptocurrencies suffered huge technical damage in this round of leverage-induced plunge, with some even plummeting to zero in an instant; even large-cap altcoins saw their values halved or even dropped more due to insufficient liquidity. The stocks of companies holding these assets have become the preferred short-selling targets when market sentiment deteriorates. When the market panics, investors need to quickly reduce their holdings. While the Bitcoin market operates 24/7, large sell-offs can significantly impact the price. In contrast, selling a stock like MSTR on the Nasdaq is much easier. Selling tens of billions of dollars worth of gold wouldn’t disrupt the market, but selling $70 billion worth of Bitcoin could cause a price crash and trigger mass liquidations; this liquidity disparity makes DAT company stocks a channel for rapid capital withdrawal. To make matters worse, many institutional investors have strict risk management guidelines. When volatility exceeds a certain threshold, they must reduce their holdings, whether they want to or not. And DATs happen to be among the most volatile stocks. To make an inappropriate analogy, if ordinary technology companies are sitting on a boat, then DAT companies are like two boats tied together, one sailing in the stock market and the other struggling in the crypto market. When both sides encounter severe weather at the same time, the impact they endure is not added but multiplied. Who is the worst off and who is the most resilient? Looking through the list of DAT companies with the largest declines in the previous trading day, you can clearly see that the smaller the company, the bigger the decline. Forward Industries fell 15.32%, with its mNAV at just 0.053. BTCS Inc. fell 12.70%, and Helius Medical Tech dropped 12.91%. These small companies, with a market capitalization of less than $100 million, found few buyers amid the panic. In contrast, MicroStrategy, the largest Bitcoin holder, saw its stock fall by only 4.84%. The logic behind this is simple: liquidity. When panic sets in, the bid-ask spreads of small-cap stocks widen dramatically, and a slightly larger sell order can drive the stock price through. Compared to DATs with relatively large market capitalizations, MicroStrategy's mNAV is only 1.28x, practically trading at the value of its holdings. The market valuations these companies essentially represent the value of their crypto assets plus a slight premium. When the crypto market crashes, these companies have no other businesses to cushion the blow. When a company’s market capitalization is almost equal to the value of its crypto holdings (mNAV is close to 1), it means that the market believes that the company has no added value other than hoarding cryptocurrencies. Bitmine's mNAV is 0.98, and other companies without precise mNAV data are likely to be much lower. These companies have effectively become crypto ETFs disguised as public companies. The question is, since there are real Bitcoin and other ETFs available to buy, why do investors still need to hold it indirectly through these companies? This may explain why these low mNAV companies tend to fall more during panics. They carry both crypto asset risk and stock market risk without providing any additional value. The US stock market will open in a few hours. Will market sentiment improve after the weekend cool-down? Will the sell-off of smaller DATs, which have fallen by more than 10%, continue, or will bargain-hunting funds enter the market? Judging from the data, companies with an mNAV below 1 may have oversold opportunities, but they may also be value traps. After all, when a business model itself is questionable, cheapness is not necessarily a reason to buy.

Author: PANews

2025/10/15

Famous Economist Warns That The Bitcoin Price Recovery Is A Dead Cat Bounce, What This Means

Famous Economist Warns That The Bitcoin Price Recovery Is A Dead Cat Bounce, What This Means

The biggest crypto market crash of the year sent shockwaves through the industry over the weekend, wiping out more than $19 billion in liquidations and pushing Bitcoin as low as $101,000. Now, as the market attempts to recover, famous economist and longtime Bitcoin critic Peter Schiff has reopened conversations on the sustainability of Bitcoin’s rebound. […]

Author: Bitcoinist

2025/10/15

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