Record Crypto Liquidations Expose Leverage

A sudden trade‑war scare triggered the largest crypto liquidation on record: over $19 billion cleared in 24 hours, with $7 billion sold in a single hour and 1.6 million traders affected. Bitcoin and Ethereum fell double digits and total crypto market cap dropped roughly $560 billion in a day, with funds fleeing to stablecoins and safer assets. The episode underscores how leverage and derivatives amplify macro shocks in crypto markets. — It highlights the transmission of geopolitical and policy risk into a retail‑heavy, lightly regulated market, informing debates on systemic risk, consumer protection, and market structure.