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Flash

Tread.fi CEO: The flash crash of perpetual contracts for AI concept stocks in the U.S. stock market began at Binance, leading to a chain of liquidations

The trading execution platform Tread.fi CEO DYJ published an analysis of the flash crash of AI concept stocks' perpetual contracts in the US stock market early in the morning, stating that the sell-off began at Binance. A trader liquidated approximately 2 million dollars of SanDisk long positions, triggering a sharp decline in other markets due to the thin depth of the order book.According to the transaction timeline listed, a large amount of active selling first appeared on SNDK at Binance, with a transaction amount of about 407,000 dollars in the first second, followed by about 1,030,000 dollars in the next second, and MU also began to see selling in the same second. Hyperliquid then saw sweeping orders, with about 10 addresses submitting IOC sell orders concentrated on SNDK, SOXL, DRAM, SKHX, SKHY, and MU within 1.8 seconds, followed by a second round of synchronized selling. These orders were all used to open new short positions, rather than just reducing positions.In the minute of the first concentrated selling, the transaction amounts for SNDK and MU on Binance were approximately 21.9 million dollars and 5.1 million dollars, respectively, while the corresponding transaction amounts on Trade.xyz were about 3.1 million dollars and 300,000 dollars. The transaction amount for MU on Hyperliquid subsequently expanded to 10.8 million dollars and 9.5 million dollars within the next two minutes, which DYJ attributed to chain liquidation.

first_img During the Wall Street market closure, chip stock contracts were liquidated for 52 million dollars in just 10 minutes

According to CoinDesk, during the market closure on Saturday, leveraged bets linked to chip stocks and semiconductor funds were liquidated for nearly $52 million within 10 minutes. According to CoinGlass data, approximately $51.6 million in chip stocks and semiconductor fund-related positions were forcibly closed between 21:22 and 21:32 UTC, of which about $38 million came from bullish bets on rising prices. The sell-off began at Binance and quickly spread to Hyperliquid within seconds.The SOXL contract, which is three times long on chip stocks, suffered the largest loss, approximately $12.7 million; contracts for SanDisk and SK Hynix each lost about $10.8 million. According to David Jeong, CEO of trading firm Tread.fi, he placed the first large sell orders for SanDisk and Micron on Binance at 21:21:59 UTC, and less than a second later, the orders impacted Hyperliquid—this platform, launched by Trade XYZ, tracks contracts for stocks, with about 10 addresses establishing short positions on 6 chip-related contracts within 1.8 seconds. In the first minute, Binance processed approximately $21.9 million in SanDisk trades, while Trade XYZ accounted for $3.1 million.Storage chip stocks had already experienced a tumultuous week due to new competition from Chinese chip manufacturer CXMT. With the stock market closed, these contracts had no real stock prices for reference, and traders could only compete against each other; the rules of Trade XYZ allow the platform to set reference prices independently before external stock quotes resume, with relevant quotes returning when U.S. stocks open on Monday.
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