A weekend selloff in a Nasdaq 100-linked perpetual futures market on EdgeX triggered about $13 million in liquidations, highlighting the risks of trading stock indexes when the underlying traditional markets are closed.
On Saturday, a newly created wallet began executing a six-hour time-weighted average price (TWAP) order to short 398 XYZ100 contracts, worth approximately $10 million, according to on-chain data from Hypurrscan.
The selling pressure sent the price of XYZ100 down more than 3.5% within minutes, triggering a cascade of liquidations.
Liquidations refer to the automatic closing of a leveraged position by a broker or exchange and occur when a trader’s losses have depleted their collateral to a point where it is no longer sufficient to maintain the position.
Blockchain data shows that a single trader lost around $7.4 million in long positions, while another was liquidated for $2.7 million, bringing the total liquidations in the market to around $13 million.
Several traders on Others have argued that such moves are an inherent risk of trading stock-linked cryptoassets outside of normal market hours.
“On weekends you no longer trade Nasdaq,” one trader wrote. “You trade whoever has the most capital on a restricted order book.”
EdgeX has quickly become one of the largest venues for perpetual futures trading. According to data from DefiLlama, the platform processed approximately $167 billion in perp trading volume last month, frequently rivaling major competitors such as Aster and Hyperliquid in terms of daily volume.
This particular liquidation cascade demonstrates the growing demand for tokenized equity products, but also the risks of trading products that reflect the price of a closed market.
