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Chip-stock bets lost $52 million in 10 minutes with Wall Street shut
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- DeepHorus
Nearly $52 million in leveraged chip-stock bets were liquidated in 10 minutes on Saturday while Wall Street was closed. The forced selling hit perpetual futures tied to semiconductor shares and funds, which trade around the clock. CoinGlass data showed about $51.6 million in positions were closed between 21:22 and 21:32 UTC, with roughly $38 million from bullish traders.
The sell-off began on Binance before spreading within seconds to Hyperliquid, where Trade XYZ lists stock-tracking contracts. David Jeong, chief executive of Tread.fi, placed the first large SanDisk and Micron sell orders on Binance at 21:21:59 UTC. Less than a second later, about 10 addresses opened bets against six chip-linked contracts on Hyperliquid within 1.8 seconds.
SOXL, a fund that triples daily chip-share moves, suffered the largest single hit at about $12.7 million. SanDisk and SK Hynix contracts followed at roughly $10.8 million each. Memory-chip shares had already endured a difficult week amid new competition from Chinese chipmaker CXMT.
Because U.S. markets were shut, these weekend contracts had no actual share price to track, so traders reacted mainly to one another. Binance handled about $21.9 million of SanDisk trading in the first minute, compared with $3.1 million on Trade XYZ. Trade XYZ’s rules allow the platform to set its own reference prices until outside stock quotes return.
Those quotes will come back when U.S. markets open on Monday, providing a benchmark for how far Saturday’s prices strayed. The episode highlights the risks of round-the-clock leveraged products that mirror equities while traditional exchanges sleep. It also shows how quickly crypto-market liquidations can cascade across venues.
For now, traders are waiting for Monday’s open to see whether the weekend flush reflected real sentiment or a crypto-only dislocation. The incident raises questions about price discovery and investor protection in perpetual stock contracts. Market participants will watch whether volatility persists once Wall Street resumes trading.
