Weekend Sell-Off Hits EdgeX’s Nasdaq-Linked Perp as $13M in Longs Liquidated

AI Summary4 min read

TL;DR

A weekend sell-off on EdgeX's Nasdaq-linked perpetual futures triggered $13M in long liquidations after a $10M short order. Thin liquidity during U.S. market closures amplified the cascade, highlighting risks in tokenized equity trading.

Key Takeaways

•A $10M short order on EdgeX's Nasdaq-linked perpetual triggered a 3.5% price drop and $13M in long liquidations over the weekend.
•Thin liquidity when traditional markets are closed makes equity-index perps vulnerable to large orders and liquidation cascades.
•EdgeX processed $167B in perp volume last month, showing crypto derivatives platforms' rapid growth into tokenized equities.
•Traders debate whether such moves represent market manipulation or inherent risk when trading equity-linked products off-hours.
•The incident demonstrates both growing demand for tokenized equity products and their unique risks compared to traditional markets.

What to know:

A newly created wallet executed a short worth roughly $10 million on EdgeX’s Nasdaq 100–linked perpetual, triggering a rapid 3.5% price drop and a liquidation cascade across long positions.
With U.S. equity markets closed, traders cannot hedge exposure to the Nasdaq, leaving equity-index perps more susceptible to large orders and thin liquidity.
EdgeX processed about $167 billion in perp volume last month, underscoring how fast-growing crypto derivatives platforms are pushing into tokenized equities.

A newly created wallet executed a short worth roughly $10 million on EdgeX’s Nasdaq 100–linked perpetual, triggering a rapid 3.5% price drop and a liquidation cascade across long positions.
With U.S. equity markets closed, traders cannot hedge exposure to the Nasdaq, leaving equity-index perps more susceptible to large orders and thin liquidity.
EdgeX processed about $167 billion in perp volume last month, underscoring how fast-growing crypto derivatives platforms are pushing into tokenized equities.

A weekend sell-off in a Nasdaq 100–linked perpetual futures market on EdgeX triggered roughly $13 million in liquidations, highlighting the risks of trading equity-index perps when 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 roughly $10 million, according to onchain data from Hypurrscan.

The sell pressure pushed the price of XYZ100 down more than 3.5% within minutes, triggering a cascade of liquidations.
Liquidations refer to the automatic closure of a leveraged position by a broker or exchange and happens 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 one trader alone lost approximately $7.4 million in long positions, while another was liquidated for $2.7 million, bringing total liquidations on the market to around $13 million.

Several traders on X questioned whether the market was vulnerable to manipulation during off-hours, noting that XYZ100 fell nearly 4% over the weekend despite no corresponding macro or equity news. Others argued that such moves are an inherent risk of trading equity-linked crypto perps outside regular market hours.

“On weekends, you’re not trading the Nasdaq anymore,” one trader wrote. “You’re trading whoever has the most capital on a thin order book.”

EdgeX has rapidly grown into one of the largest venues for perpetual futures trading. According to DefiLlama data, the platform processed approximately $167 billion in perp trading volume last month, frequently rivaling major competitors such as Aster and Hyperliquid in daily volume.

This particular liquidation cascade demonstrates growing demand for tokenized equity products but also the risks of trading products that that mirror price of a closed market.

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