The Nasdaq 100 index-linked perpetual futures market on EdgeX suffered a weekend sell-off, triggering liquidations of approximately $13 million, highlighting the risks of trading equity index perpetual contracts when the underlying traditional markets are closed.
On Saturday, a newly created wallet began executing 6-hour time-weighted average price (TWAP) orders to short 398 XYZ100 contracts worth approximately $10 million, according to on-chain data from Hypurrscan.
Selling pressure caused the XYZ100 price to drop more than 3.5% in a matter of minutes, triggering a cascade of liquidations.
Liquidation is when a broker or exchange automatically closes a leveraged position and occurs when a trader’s losses cause their collateral to be depleted to the point that it is no longer sufficient to maintain the position.
Blockchain data shows that one trader alone lost approximately $7.4 million in long positions, while another trader was liquidated for $2.7 million, bringing the total liquidations on the market to approximately $13 million.
Several traders on Others see such moves as an inherent risk of trading stock-related cryptocurrencies outside of regular market trading hours.
“You no longer trade the Nasdaq on the weekends,” one trader wrote. “You’re trading who has the most money on a thin order book.”
EdgeX has quickly grown into one of the largest perpetual futures trading venues. According to DefiLlama data, the platform processed approximately $167 billion in Perp trading volume last month, often rivaling major competitors such as Aster and Hyperliquid in terms of daily trading volume.
This particular liquidation cascade demonstrates the growing demand for tokenized equity products, but also the risks of trading products that reflect closed market prices.