The fall of LIGHT triggers massive liquidations in the futures market

The BitLight (LIGHT) token experienced a significant crash in recent hours, causing a shockwave in the derivatives markets. According to Coinglass data, the liquidated positions of LIGHT reached a historic figure of $7.64 million in just 4 hours, making it the most severe liquidation event across the entire network during that period.

Magnitude of the decline and current data

The impact on the price was devastating: LIGHT dropped below the psychological barrier of $1, hitting lows not seen in months. At the peak of the turbulence, the coin was traded at $1.12, reflecting a 69.54% loss over 24 hours.

Recent data shows that LIGHT remains in depressed territory, trading at $0.46 with an additional 1.94% decline in the last 24 hours, suggesting that selling pressure continues in the market.

Impact on leveraged positions

The scale of liquidations highlights the systemic risk in cryptocurrency futures markets. Thousands of traders holding long positions in LIGHT were automatically liquidated as the price collapsed, amplifying panic selling and deepening the fall. This domino effect is characteristic of flash crashes in lower-cap assets, where order book depth is limited.

The event underscores the extreme volatility that characterizes certain tokens in the market and the importance of properly managing leverage risk on trading platforms.