Weekend Sell-Off Triggers $13M in Long Liquidations on EdgeX's Nasdaq-Linked Perpetual
A newly created wallet executed a six-hour TWAP short of 398 XYZ100 contracts, valued at approximately $10 million, on EdgeX's Nasdaq-100–linked perpetual product. During the weekend, the XYZ100 price fell about 3.5% to 4%, triggering roughly $13 million in long liquidations. Among those affected, one trader lost about $7.4 million while another lost approximately $2.7 million.
With U.S. equity markets closed, hedging Nasdaq exposure was not possible, leaving equity-index perpetuals vulnerable to large orders amid thin liquidity. Traders cited the off-hours manipulation risk due to a thin order book, highlighting the vulnerability of these markets to significant capital moves outside traditional trading hours.
EdgeX, having processed about $167 billion in perpetual volume last month, underscores rapid growth in crypto derivatives and increasing competition with platforms like Aster and Hyperliquid. Events such as this highlight the growing demand for tokenized equity products, as well as the risks inherent in trading equity-index perpetuals when traditional markets are closed.
As one of the largest perpetual-futures venues, EdgeX's incident illustrates how quickly liquidations can cascade in conditions of thin liquidity.
