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Entire Accounts Got Wiped Out As XRP Plunged
When trading derivatives, such as the XRP/USD Perpetual Quanto Swap Contract, you’re trading on leverage. This means your earnings are multiplied if the trade works in your favor. On the other hand, you can lose all of your holdings quickly if the trade goes against you.
Before XRP/USD flash crashed on Bitmex on Thursday, the crypto pair was undeniably bullish. As of Thursday, its year-to-date return was over 70%. So it made sense for traders to long the pair. This exacerbated the impact of the mega dump.
Entire accounts were liquidated as stops failed to execute. Many traders lost everything they had on Bitmex.