The global crypto market cap which was trading above $1 trillion has now dropped around $800 billion due to FTX’s liquidity issues. Around $700 million in long or the one who had bet for higher prices have been liquidated over the last 24hrs as these traders prediction has turned out to be negative.
Also with this liquidation Futures tracking Bitcoin and Ethereum has lost nearly $390 million along with $40 million SOL futures being liquidated. However, FTT Futures’ liquidation is comparatively lesser which accounts to $27 million.
Liquidation happens when any exchange closes a trader’s position because of complete or partial loss of the trader’s initial holdings.
Source: https://coinpedia.org/crypto-live-news/700m-in-long-gets-liquidated-as-the-overall-crypto-market-tumbles/