Crypto Liquidations Hit $800M Amid Asia Chip Sector Rout

Key Facts

1Leveraged positions worth $800 million were liquidated over 24 hours, with long positions accounting for 86% of the total.

2Tokenized chip-stock contracts saw significant liquidations alongside a broader sector rout in Asia.

Leveraged positions worth $800 million were liquidated in the crypto market over a 24-hour period, with long positions accounting for 86% of the total wipeout. CoinDesk reported that the event was triggered by a significant rout in the Asian semiconductor sector, causing tokenized chip-stock contracts to collapse alongside broader equity markets.

The liquidations heavily impacted contracts tied to SanDisk, SK Hynix, and Micron, as well as tokenized versions of U.S. semiconductor ETFs like SOXL. This sell-off aligned with a drop of more than 6% in South Korea's KOSPI index, driven by concerns over AI valuations and competition from Chinese manufacturers, leading to massive forced closures across major exchanges.