XRP Suffers 37% Flash Crash as Crypto Liquidation Cascade Wipes Out $1.35 Billion
A brutal weekend leverage flush wiped out $1.35 billion in crypto positions in 24 hours, triggered by a 37% flash crash in XRP. Thin weekend liquidity and overextended retail long positions sparked minutes of intense market liquidation, concentrated on Binance. Despite the shock, spot buyers quickly absorbed the dip, lifting XRP back toward the $1.50 mark.
A massive weekend leverage flush erased $1.35 billion across derivatives markets in 24 hours, leaving overextended traders stranded. The violent market shock hit XRP hardest, sending the token down 37% in minutes before aggressive spot buyers stepped in to reclaim the $1.50 level.
The cascading liquidations swept through the entire altcoin space during thin weekend liquidity. Over $500 million in late long positions were wiped out in a flash, forcing Bitcoin down 2.5%, Ether down 5%, and Solana down over 11%. Data shows the bulk of the liquidation volume hit Binance order books within a tight multi-minute window.
Market analysts note that short interest did not spike during the downturn, confirming the collapse was driven entirely by forced long liquidations rather than aggressive fresh shorting. With XRP up over 60% earlier in the week, crowded retail leverage created a fragile market structure that collapsed the moment liquidity thinned.