Analysis states that U.S. stock AI concept-stock perpetual contracts' flash crash was triggered by Binance sell orders and involved cascading liquidations
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AT A GLANCE
DYJ The analysis stated that the flash crash in the relevant perpetual contracts began on Binance, followed by concentrated selling and cascading liquidations.
Article
⚡️Analysis: U.S. stock AI concept-stock perpetual contracts experienced a flash crash beginning on Binance, followed by cascading liquidations
According to BlockBeats,October 18，Tread.fi CEO DYJ published an analysis of U.S. stock AI concept-stock perpetual contracts' flash crash in the early hours today, stating that the sell-off began on Binance. A trader closed approximately 2000000 USD SanDisk (SNDK) long position, triggering sharp declines in other markets amid thin order-book depth.
According to the transaction timeline it listed,Binance SNDK was the first to see a large aggressive sell order, with transaction volume of approximately 407000 USD in that second; 1 seconds later, 1030000 USD；MU also began seeing sell orders in the same 1 seconds.DYJ stated that Hyperliquid subsequently saw order sweeping, with approximately 10 addresses submitting sell orders to 1.8 within SNDK、SOXL、DRAM、SKHX、SKHY and MU in a concentrated manner, followed by a second round of synchronized selling. These orders were all used to open new short positions, rather than merely reduce positions.
In the minute of the first concentrated sell-off,IOC sell orders.Binance SNDK、MU transaction volumes were approximately 21900000 USD、5100000 USD, while the corresponding volume on Trade.xyz was approximately 3100000 USD、300000 USD. Transaction volume for MU on Hyperliquid subsequently expanded to 10800000 USD、9500000 USD，DYJ attributed this phase to cascading liquidations.
Original link https://m.theblockbeats.info/flash/372388
Key points
01
BlockBeats stated that October 18，Tread.fi CEO DYJ published an analysis of U.S. stock AI concept-stock perpetual contracts' flash crash in the early hours of that day.
02
DYJ stated that the sell-off began on Binance, where a trader closed approximately 2000000 USD of a SanDisk (SNDK) long position.
03
Its listed timeline shows that Binance SNDK was the first to see a large aggressive sell order, with transaction volume of approximately 407000 USD in that second; 1 seconds later, 1030000 USD；MU also began seeing sell orders in the same 1 seconds.
04
DYJ stated that Hyperliquid subsequently saw order sweeping, with approximately 10 addresses submitting sell orders to 1.8 within SNDK、SOXL、DRAM、SKHX、SKHY and MU in a concentrated manner, followed by a second round of synchronized selling.IOC sell orders, followed by a second round of synchronized selling.
05
The article stated that these orders were used to open new short positions, rather than merely reduce positions.
06
In the minute of the first concentrated sell-off, Binance's SNDK、MU transaction volumes were approximately 21900000 USD、5100000 USD, while the corresponding volume on Trade.xyz was approximately 3100000 USD、300000 USD。
07
Transaction volume for MU on Hyperliquid subsequently expanded to 10800000 USD、9500000 USD，DYJ attributed this phase to cascading liquidations.
AI-assisted interpretation
The following is analysis, separate from reported facts. Verify important claims independently.
Perpetual contracts are contracts with no fixed expiration date. The article describes that, amid thin order-book depth, large aggressive sell orders first appeared on Binance, followed by concentrated sell orders and sharp declines in other markets and across multiple contracts. The above process and the assessment of “cascading liquidations” come from DYJ's analysis.
Why it matters to readers
The report involves synchronized selling and increased trading volume across several related contracts over a short period, indicating that concentrated trading may be accompanied by significant price volatility and liquidation risk when order-book depth is thin.
Beginners should note that perpetual contracts carry leverage and liquidation risks; when market depth is thin, large orders may cause severe volatility. The claimed starting point of the event and the liquidation attribution remain the analyst's statements and should not be treated directly as independently confirmed conclusions.
Risks and unknowns
The claim that the sell-off began on Binance comes from DYJ's analysis; the original article did not provide exchange confirmation.
Approximately 10 addresses' ownership and reasons for their concentrated order placement were not specified.
The assessment that all orders were used to open new short positions has not been independently verified.
The claim that increased Hyperliquid trading volume was caused by cascading liquidations is DYJ's attribution; the original article did not provide independent corroboration.
Related Developments
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The identity of a certain trader and the reason for closing the position are unknown.
Related concepts
Perpetual Contract
A derivative contract with no expiration date, designed for continuous holding, whose funding rate mechanism helps keep its price close to that of the underlying asset.
