Tokenized SanDisk bets saw more liquidations than XRP as Asia’s chip rout wipes out $800 million
Reported by CoinDesk · AI-assisted summary by ChikoCorp AI News Desk
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Summary
Crypto exchanges liquidated approximately $803 million in leveraged positions within 24 hours, mostly from long positions, as bitcoin briefly dropped below $81,000. SanDisk perpetual futures saw $19.09 million in liquidations, surpassing XRP’s $18.78 million, highlighting significant leveraged betting on semiconductor stocks through crypto venues. The liquidation trend later reversed as bitcoin rose above $83,000, with short positions making up 79% of the $74 million liquidated in the following four hours.
Why it matters
The source implies that the liquidation of substantial leveraged bets on semiconductor stocks like SanDisk signals growing use of crypto platforms for trading traditional stock sectors. This also reflects the impact of regional stock selloffs, such as South Korea’s KOSPI falling over 6%, on crypto markets and leveraged positions. No direct commentary is provided on broader market or policy implications.
Key context
Liquidations occur when exchanges forcibly close traders’ borrowed positions after losses consume collateral. Most losses were concentrated in the last 12 hours, coinciding with both a fall in bitcoin prices and a sharp decline in South Korean tech stocks, including an 8% drop for Samsung Electronics and SK Hynix. Perpetual futures contracts allow continuous trading without expiry dates, facilitating leveraged bets on stocks like SanDisk. The source notes a reversal in liquidations as bitcoin recovered.
Key numbers and entities
$803 million total liquidations across 10 exchanges; 86% from bullish positions; 172,113 traders affected. SanDisk saw $19.09 million liquidations, XRP $18.78 million, HYPE $19.04 million; bitcoin $181 million, ether $178 million, SOL $60 million, ZEC $24 million, NEAR $22 million. Largest individual liquidation: $9.65 million bitcoin long on Binance, which accounted for half of all liquidations. Other mentioned entities: Samsung Electronics, SK Hynix, Micron, SOXL ETF, South Korea’s KOSPI index.
What remains unclear
The source does not provide detailed explanations of the specific factors driving volatility in semiconductor stocks beyond mentioning AI valuation concerns and Chinese competition. It also does not specify the identities or strategies of traders heavily leveraged on these positions or the impact on broader market sentiment. Further implications for crypto regulation or changes in trading behavior are not discussed.