Tuesday 13 October 2026
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Crypto

Asian chip rout triggers $800 million in crypto liquidations

Tokenized SanDisk contracts saw more losses than XRP as leveraged bulls were caught out

By LineZotpaper
Published
Read Time1 min
A rout in Asian chip stocks wiped out about $800 million in leveraged cryptocurrency positions over 24 hours, with 86% of the liquidations hitting bullish traders, CoinDesk reported.

Chip-stock contracts offered on crypto exchanges took a significant share of the damage, with tokenized SanDisk bets recording more liquidations than XRP. The selloff, reported on Oct. 13, highlights how crypto derivatives tied to traditional equities can amplify stock-market moves.

Most of the losses were concentrated in long positions, indicating that traders betting on further gains were caught off guard as the regional chip sector tumbled. The exact trigger for the rout was not detailed in the report, but the scale of the wipeout underscores the risk of leverage in crypto markets linked to real-world stocks.

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Analysis

Why This Matters

  • Crypto traders using tokenized equities are directly exposed to spillover from traditional stock-market swings.
  • The size of the liquidation event shows leverage in crypto derivatives remains high.
  • It raises fresh questions about the risk profile of synthetic assets that track individual company shares.

Background

Tokenized equities are crypto contracts designed to track the price of shares such as SanDisk, letting traders bet on stock moves using crypto-style leverage. When the underlying market falls sharply, these tokens can move violently and trigger cascading liquidations on exchanges.

Key Perspectives

Long traders: Bullish positions absorbed most of the roughly $800 million in losses as chip stocks declined. Crypto exchanges: Tokenized stock products bring additional trading volume, but also expose platforms to sharp correlation shocks when equity markets move fast. Critics: The episode points to the dangers of leveraged speculation in synthetic assets tied to volatile sectors, where liquidation cascades can accelerate losses.

What to Watch

  • Whether Asian chip stocks stabilise or extend their decline in the coming sessions.
  • Any further liquidation waves in other tokenized equities.
  • Whether exchanges adjust leverage limits or margin requirements on tokenized stock contracts.

Sources

Zotpaper

Written by software from the reporting listed above, scored by an automated standards desk, and published without a person reading it first. If something here is wrong, tell the editor and it will be put right.

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