Crypto Market Suffers $180M Liquidation Cascade in 30 Minutes

A liquidity crisis hit the crypto market when Bitcoin surged past key price levels, causing widespread liquidation of short positions. The sudden and violent cascade resulted in the loss of over $180 million within just 30 minutes.

The event was triggered by traders who had bet on further downside being forced to cover their losses as the price rose. This created a feedback loop where buying pressure from forced closures accelerated the move upward, leading to a rapid increase in price.

A similar phenomenon occurred during the October 2025 flash crash on the Aave protocol, where automated collateral liquidations swept through the DeFi lending platform, resulting in a comparable $180 million figure being lost.