"Leverage is the dice of the casino; some use it to become rich overnight, while others use it to return to poverty overnight—today's $219 million liquidation is just the 10,086th 'bloody reminder' of the crypto market!"

1. The bloody truth behind the data: 68,926 people were 'cut' invisibly

Within 24 hours, the total liquidation across the network reached $219 million, equivalent to burning $8,200 every second. Even more shocking is that ETH has become the 'king of liquidation', accounting for 43.5% of the total network liquidation. History is eerily similar: in July 2025, the crypto market experienced 'Black Monday', with Bitcoin plummeting 15% in a single day, Ethereum falling below $3,500, and the total network liquidation reaching $956 million, affecting 310,000 investors (Source: Coin World). Today, the same script is being played out—when the long-to-short ratio drops to 1.2 and the proportion of accounts with leverage exceeding 30 times reaches 67%, the market has long buried the fuse for liquidation.

2. The three major culprits of the liquidation wave: Emotion, Leverage, and Black Swans

Emotional resonance: Currently, the price of ETH is stuck at $4,456; beneath the seemingly calm surface, the long-to-short ratio has dropped to 1.2 (Binance data), indicating that most people are still in a 'bottom-fishing fantasy'. However, historical experience shows that when the long-to-short ratio falls below 1.5, the market is highly susceptible to a sell-off triggered by negative news. Leverage bubble: The ETH contract open interest remains at a high level of $57 billion (data from July 28), equivalent to all retail investors 'running naked'. More dangerously, some exchanges have liquidation thresholds as high as 30%, while the XBIT decentralized platform has achieved 'zero slippage' through on-chain liquidation (Source: ZAKER News). Black Swan triggers: Uncontrollable factors such as geopolitical conflicts and policy changes could become the last straw that breaks the leverage. Just like the crash in June 2025, no one expected a military action would make ETH 'break down'.

Finally, let me ask you a question: if you currently have 10,000 USDT, would you follow the retail investors to go long or wait to buy the dip at $4,425? Let's discuss your survival strategy in the comments section, and next time we'll analyze how the main players use the liquidation wave to reap profits!