The crypto world is once again staging a dramatic scene of pulling back from the cliff. A coin that was driven by hype and buzz caused a massive liquidation event during the recent market rally.

According to on-chain data from January 10th, this coin alone saw a liquidation volume of $1.078 million within just one hour—of which $860,000 were short positions and $216,800 were long positions. But this is just the tip of the iceberg. The total liquidation across the entire network in 24 hours on the same day reached $114 million, with over 60,000 accounts wiped out in the volatility. On average, more than forty traders are forcibly liquidated every minute.

The most outrageous single liquidation occurred in a BTC contract on a certain exchange, amounting to $2.5192 million—probably requiring some serious mental preparation for that trader.

Essentially, these types of coins are speculative tools lacking fundamental support. When market sentiment shifts from euphoria to caution, leveraged positions can become instant triggers. High leverage + one-sided market movements often straightforwardly harvest a batch of traders.

This incident once again reminds everyone: hype can inflate a bubble, but it cannot prevent a free fall during a downturn. No matter how much leverage you use, the risk gets closer. What are your thoughts on this market rally? Have you encountered similar situations during market volatility?