Market flash crash triggers chain liquidation, a leveraged trader's single trade loses $25.83 million

LiquidityWitch · 2026-01-19T02:48:10+00:00

On January 19th, the market experienced a flash crash, with multiple trading platforms facing massive liquidations. A total of 38 single-coin losses exceeded $1 million, including a BTC long position loss of up to $25,833,800. This incident serves as a reminder to traders that leverage risks should be approached with caution, as stop-losses may become ineffective during extreme market conditions.

LiquidityWitch

2026-01-19 02:48:10

Abstract generation in progress

【Blockchain Rhythm】On January 19th, during a market flash crash, multiple trading platforms experienced large-scale liquidations. According to on-chain data monitoring, a total of 38 liquidation positions with losses exceeding $1 million each were recorded on that day, involving mainstream cryptocurrencies such as BTC, ETH, and various altcoins. The most severe case involved a trader’s BTC long leveraged position, with a single loss of up to $25.83 million. This flash crash not only impacted contract traders’ accounts but also once again reminded investors — in the highly volatile crypto market environment, leverage risks can be triggered instantly. Experienced traders usually set stop-loss orders to avoid such extreme market conditions, but during rapid market declines, stop-losses often cannot keep up with the downward speed, leading to increased slippage and further losses. Such large liquidation events are not uncommon during intense market volatility and serve as a warning to all traders using leverage.

BTC-2,4%

ETH-3,15%

View Original

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.

13 Likes

Reward
13
4
Repost
Share

Comment

0/400

WhaleInTraining

· 4h ago

25.83 million disappeared in an instant—that's the power of leverage...

View OriginalReply0

DegenApeSurfer

· 5h ago

$25.83 million disappeared in an instant, this is the charm of leverage --- Setting stop-losses is useless; everyone is equal in front of slippage --- 38 margin calls? I bet this guy has already switched careers --- Playing with leverage in this market is just pure giving away, no reason needed --- This is the fastest way to get rich in the crypto world, haha --- It's that old saying again, leverage doesn't kill people, it accelerates death --- Seeing these numbers makes me grateful that I only trade spot, good sleep quality --- Can't keep up with stop-loss during rapid declines? That's a mindset issue --- Single loss of 25.83 million, I might as well be a joke-level loss

View OriginalReply0

gas_guzzler

· 5h ago

$25.83 million disappeared overnight, how much resilience does that take? I'm truly impressed.

View OriginalReply0

ForeverBuyingDips

· 5h ago

The fate of bottom-fishing is like this—one sudden dip and it's gone. $25.83 million... This guy probably won't turn things around in his lifetime.

View OriginalReply0