Tokenized SanDisk Bets Had More Liquidity Than XRP as Asian Chips Wipe Out $800 Million

Around $800 million in leveraged positions was wiped out within 24 hours, 86% of which were long. Chip stock contracts on crypto exchanges took part of the losses.

Traders betting on SanDisk lost more in the past 24 hours than traders betting on XRP due to forced liquidations — a sign of how much leverage crypto exchanges currently have on the chip stock.

According to CoinGlass, about $803 million was liquidated in leveraged positions across 10 exchanges. Liquidation occurs when an exchange forcibly closes a trader's long position because their losses have been wiped out by collateral. Longs, or bets on higher prices, accounted for $694 million, or 86 percent, and 172,113 traders were hit.

Most of the damage was caused by explosions. About $595 million, nearly three-quarters of the day's total, was cashed out in the past 12 hours as South Korea's KOSPI fell more than 6 percent and bitcoin fell below $81,000. The biggest drop was a $9.65 million bitcoin on Binance, which closed at around $81,773. Binance accounted for half of the liquidations.

Bitcoin led the way with $181 million in liquidity, with Ether trailing behind with $178 million despite a much smaller market. SOL bets lost $60 million, ZEC $24 million and nearly $22 million.

Stock contracts appeared next. Perpetual futures tracking US memory chip maker SanDisk saw $19.09 million in cash, slightly higher than $19.04 million for HYPE and $18.78 million for XRP. These perpetual futures contracts allow traders to bet on the price of shares in cryptocurrency venues without an expiration date. SK Hynix and Micron contracts, along with SOXL, a triple-leveraged US semiconductor ETF, also appeared on the heatmap with $7.21 million in SOXL.

These losses were accompanied by selling in Seoul. CoinDesk reported that Samsung Electronics and SK Hynix each fell about 8 percent on concerns about AI-related valuations and competition from Chinese memory chip makers.

The oil went the other way. WTI and Brent crude contracts were among the few where short bets accounted for most of the liquidations, as Brent remained near $106 after a three-day rally.

This trend has since been reversed. Of the $74 million cashed out over the past four hours, $59 million, or 79%, came via shorts as Bitcoin rose above $83,000.

With bullish bets behind 86% of the day's eliminations and short sellers already taking losses, Bitcoin heads into Thursday's US inflation report with much of its long-term leverage erased.

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