Bitcoin News Update: The Ripple Impact of Leverage: $1.2 Trillion Disappears Within Weeks
- A trader lost $168 million in under an hour on HyperLiquid via leveraged shorts, later doubling down with $115 million in GMX bets. - $1.2 trillion vanished from crypto markets as leveraged positions amplified sell-offs, driven by fading Fed rate-cut hopes and inflation fears. - 20x-100x leverage made markets hypersensitive to price swings, with cascading liquidations triggering $1 billion in 24 hours. - Bitcoin’s $91,000 level and unresolved macro risks highlight ongoing fragility, mirroring past levera
The crypto market recently went through one of its most turbulent periods, with a leveraged trader suffering a $168 million loss on HyperLiquid in less than sixty minutes,
This event highlights a wider trend of aggressive leverage and risk-taking in crypto derivatives trading.
The use of leverage further intensified the turmoil.
Although the market saw a brief recovery, with crypto assets stabilizing around $3.13 trillion,
This situation is reminiscent of previous collapses, such as
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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