The cryptocurrency market witnessed a sharp uptick in volatility over the past hour, with over $105 million in leveraged futures positions liquidated across major exchanges. This rapid deleveraging event brings the total liquidations over the last 24 hours to approximately $296 million, according to data aggregated from major trading platforms.

What Happened and Why It Matters

Liquidation occurs when an exchange forcibly closes a trader’s leveraged position because the margin balance falls below the required maintenance level. This mechanism is designed to prevent losses from exceeding the trader’s deposited collateral. The recent spike suggests that a significant number of traders were caught off guard by a sudden price movement,…