#CEXvsDEX101
That’s a pretty dramatic headline! Let’s unpack it a bit.
A liquidation in the crypto market happens when a trader’s leveraged position (where they borrow funds to increase their position size) hits a certain price threshold, prompting forced closure of that position to prevent further losses. This often happens during periods of high volatility, when prices swing rapidly.
Here’s a breakdown of what might have happened:
$345 million is a big chunk of liquidations in a single hour — that suggests a large move in price, likely causing many traders to get stopped out.
These liquidations can happen on both long and short positions.
It’s often a sign that sentiment is shifting rapidly, with leveraged traders caught on the wrong side.
If you’d like, I can look up real-time data on which tokens or exchanges saw the biggest liquidations, or help explain the mechanics of leveraged trading and why liquidations are so impactful. Let me know! 🚀📉