Traders get crushed as a Trump social media post triggers a massive $415 million crypto whipsaw
A Trump social media post caused extreme crypto volatility, leading to $415 million in leveraged trader liquidations in four hours.Summary
Cryptocurrency traders experienced a significant whipsaw on Monday afternoon, resulting in over $400 million in liquidations across long and short positions within four hours. The volatility was triggered when U.S. President Donald Trump posted on Truth Social that he had postponed strikes against Iranian power plants, causing Bitcoin to spike from $67,500 to over $71,200. However, Iran's semi-official Fars news agency subsequently denied any communication with Trump, causing Bitcoin to quickly drop by about $1,200. CoinGlass data showed total liquidations reached $415 million, with short liquidations ($280 million) significantly outweighing long liquidations ($135 million), suggesting the market was heavily positioned for escalation. Bitcoin accounted for $140 million of the total liquidations, followed by Ether at $120 million. This event highlighted how amplified headlines, especially when derivatives dominate trading volume, can cause liquidation cascades in both directions, inflicting substantial damage on leveraged traders despite modest net price movement.
(Source：CoinDesk)