2025-12-26 08:22:54

On Wednesday evening, a leading exchange's BTC/USD1 trading pair experienced a dramatic fluctuation — Bitcoin plummeted from $87,600 to $24,100 within seconds, a drop of over 70%. But at nearly the same speed, the price rebounded back to around $87,000.

This "flash crash" was limited to the USD1 trading pair; other major BTC trading pairs remained unaffected, and subsequent trading quickly returned to normal.

What happened? Industry analysts believe that such sudden volatility typically stems from two factors: liquidity exhaustion or system display errors. Especially for some emerging or low-volume stablecoin trading pairs, there is often a lack of sufficient market makers to support the order book, resulting in shallow depth. A large market sell order, a forced liquidation, or certain automated trading instructions can easily break through buy orders, causing the price to momentarily detach from the true market level — until new buy orders flood in.

Interestingly, many spot holders found that their positions were hardly affected before and after this volatility. This also reflects the limitations of flash crashes — they may be issues specific to certain trading pairs' liquidity rather than systemic risk.

Given the current geopolitical uncertainties and fluctuating market liquidity, this event serves as a wake-up call for traders engaging in excessive leverage.

At the time of writing, BTC is quoted at $87,516.76. Over the past 24 hours, a total of 73,643 traders have been liquidated, with total liquidation amount reaching $104 million.

BTC-0,24%

USD1-0,04%

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WinterWarmthCat

· 5h ago

It's that USD1 trash trading pair again. Don't mess around with low liquidity. Getting liquidated by 73,643 people is the real pain.

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RektRecorder

· 12-27 21:49

It's that USD1 thing again, it should have been stopped long ago. --- A 70% drop followed by a quick rebound—this is the daily routine of spot trading with leverage explosions. --- Low liquidity is really a trap; small trading pairs are just a minefield. --- 73643 people were liquidated... I remember my friend's screenshot from that day. --- Flash crashes are not a big deal; system failures are what truly lead to despair. --- Even with such a plunge, people are still trading the USD1 pair? I don't understand. --- This time is considered good; at least the price rebounded, unlike last time when it got stuck directly. --- With unstable geopolitical situations, daring to open full leverage? That's just asking for death. --- If one trading pair has an issue, it doesn't affect others; it shows the exchange separation isn't enough. --- $100 million liquidation... how many people could have a bowl of soup with that money?

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MidnightMEVeater

· 12-26 08:49

USD1 trading pair with such a small pool is just a robot playground; a single whale order can completely trigger a liquidity trap.

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orphaned_block

· 12-26 08:46

A 70% drop is really shocking. Luckily, it's a USD1 issue, or else it would have gone bankrupt. --- It's again due to liquidity issues. Small trading pairs are just so frustrating. --- Spot traders are laughing, while leverage traders have to pay tuition again. --- $104 million liquidation... How much BTC could this buy? --- Just want to know whose big order was so aggressive, it suddenly broke through the buy wall. --- System malfunction or liquidity exhaustion, the exchange should give an explanation. --- The USD1 trading pair is really useless. Why are people still using it?

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NoStopLossNut

· 12-26 08:30

Again, USD1 this crappy trading pair, it's really outrageous. Hit another wave, leveraged players are being liquidated again. Low-liquidity pairs are like this, a big order can crash them. Fortunately, only that trading pair had issues, the spot market is fine, or I would be crying my eyes out. 73,643 people got liquidated, losing 100 million, this is the cost of over-leverage. The lack of liquidity in USD1 has been known for a long time, who still dares to play? Honestly, it's still a problem with the exchange, the order book is too shallow. It seems that stablecoin trading pairs should all strengthen risk control. Fell from 87,600 to 24,100 in one second, have you seen this... so intense. That's why I only trade spot, leverage really is money-making.

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SeasonedInvestor

· 12-26 08:27

Oh my, it's another USD1 trick, this trading pair has never been normal Leverage traders have gone to the northwest again, serves them right Holding spot is the best, I don't play those fancy tricks With such shallow liquidity, still daring to take over, just giving away money Flash crashes scare people, the real risk is in the leverage territory Over 100 million liquidation, luckily I didn't join the fun USD1 this trading pair is really a 💰 harvesting machine, the alarm has been ringing for a long time

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