Crypto chip-stock contracts see $52 million liquidation wave during Wall Street closure

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Crypto chip liquidation wave

Highlights

About $51.6 million in leveraged chip-stock and semiconductor fund positions, mostly longs, were liquidated between 21:22 and 21:32 UTC on Saturday during Wall Street closure.
SOXL contracts saw the largest liquidation at approximately $12.7 million, followed by SanDisk and SK Hynix contracts at about $10.8 million each amid heavy selloff.
Binance facilitated $21.9 million in SanDisk trading within the first minute as traders reacted to bearish momentum without live U.S. cash market price anchors.

Liquidation surge in weekend chip contracts

As reported by CoinDesk, citing CoinGlass, about $51.6 million in leveraged positions tied to chip stocks and semiconductor funds are force-closed between 21:22 and 21:32 UTC on Saturday, with roughly $38 million of the total coming from traders betting on higher prices.

These positions are placed through perpetual futures, contracts that track stock prices and trade continuously on crypto exchanges even when Wall Street is shut. When losses consume a trader's posted collateral, the position is automatically closed, a process that can intensify selling pressure and deepen losses for other leveraged traders.

SOXL, the fund designed to triple daily moves in chip shares, records the largest liquidation total at about $12.7 million. Contracts linked to SanDisk and SK Hynix follow, with about $10.8 million each wiped out in the selloff.

Price discovery strains as cash market stays shut

The selling begins on Binance, based on trade analysis by David Jeong, chief executive of trading firm Tread.fi, who says the first large SanDisk and Micron sell orders appear on Binance at 21:21:59 UTC. Less than a second later, orders hit Hyperliquid, where Trade XYZ lists stock-tracking contracts, and roughly 10 addresses open bearish positions across six chip-linked contracts within 1.8 seconds.

Binance handles about $21.9 million of SanDisk trading in the first minute, compared with $3.1 million on Trade XYZ. The sharp move comes after a difficult week for memory-chip shares as investors weigh fresh competition from Chinese chipmaker CXMT.

Because the U.S. stock market is closed, the contracts have no live underlying share price to anchor them, leaving traders largely reacting to one another. Under Trade XYZ's rules, platform trading sets its own reference prices until outside stock quotes return, with Monday's U.S. market open set to show how far Saturday's contract prices stray from actual cash-share levels.

In our earlier article on Micron’s weakening technical setup, we noted that the stock had broken below a rising-wedge pattern, with RSI and MACD rolling over and support targets emerging in lower trading ranges. We also highlighted the key levels that would need to be reclaimed to negate the bearish view, framing why semiconductor names could remain vulnerable to sharp, momentum-driven moves.

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