The crypto market just reminded everyone, again, that leverage is a double-edged sword. Over $432 million in positions were forcibly closed across major exchanges in a single 24-hour period, according to CoinGlass data reported by Phemex News.

The pain was overwhelmingly one-sided. Long liquidations totaled approximately $365 million, dwarfing the $66.8 million in short liquidations.

The anatomy of a leverage flush

An estimated 100,000 to 130,000 traders were affected by the wave of forced closures, per CoinGlass data.

Bitcoin and Ethereum perpetual futures bore the brunt of the liquidations, which is consistent with how these events typically play out. Perpetual futures, the most popular derivative instrument in…