Summary
TLDR: Crypto-tracked futures faced over $800 million in losses, with $660 million from long positions being liquidated. Liquidation happens when an exchange closes a trader’s leveraged position due to loss of initial margin.
Key Points
1. Crypto-tracked futures experienced over $800 million in losses, marking the second-largest figure of the year.
2. Long positions, which bet on higher prices, faced $660 million in liquidations, potentially influencing the market downturn.
3. Liquidation happens when an exchange forcibly closes a leveraged position due to the trader’s initial margin being partially or completely lost.