A weekend selloff in a perpetual futures market linked to the Nasdaq 100 on EdgeX triggered approximately $13 million in liquidations, highlighting the risks of trading with stock index criminals when the underlying traditional markets are closed.
On Saturday, a newly created wallet began executing a six-hour time-weighted average price (TWAP) order to short 398 XYZ100 contracts, worth approximately $10 million, according to on-chain data from Hypurrscan.
The selling pressure caused the price of XYZ100 to fall by more than 3.5% in a matter of minutes, triggering a cascade of liquidations.
Liquidations refer to the automatic closing of a leveraged position by a broker or exchange and occur when a trader’s losses have depleted their collateral to a point where it is no longer sufficient to maintain the position.
Blockchain data shows that a single trader lost approximately $7.4 million in long positions, while another was liquidated for $2.7 million, bringing total liquidations in the market to around $13 million.
Several X traders questioned whether the market was vulnerable to after-hours manipulation, noting that the Others argued that such moves are an inherent risk in trading stock-linked crypto crooks outside of regular market hours.
“Weekends no longer trade on the Nasdaq,” one trader wrote. “You are negotiating with whoever has more capital in a small order book.”
EdgeX has quickly become one of the largest venues for perpetual futures trading. According to data from DefiLlama, the platform processed approximately $167 billion in criminal trading volume last month, frequently rivaling major competitors such as Aster and Hyperliquid in daily volume.
This particular liquidation cascade demonstrates the growing demand for tokenized equity products, but also the risks of trading products that reflect the price of a closed market.
