According to @EmberCN, an AAVE leveraged-long whale sold 70,000 AAVE at an average price of 223 USD over the past four hours, swapped to 15.62 million USDC, and repaid all Aave borrowings, fully deleveraging the position (source: @EmberCN on X, Oct 17, 2025; on-chain address 0xebb4ee6fe7a3cb6c207e62d46a6519e1878c5855 via DeBank). After the debt repayment, the wallet holds about 21,000 AAVE worth roughly 4.8 million USD, removing immediate liquidation risk on Aave for that address’s position (source: @EmberCN on X, Oct 17, 2025; on-chain address 0xebb4ee6fe7a3cb6c207e62d46a6519e1878c5855 via DeBank). In April, the same wallet partially cut AAVE around 120 USD to avoid liquidation when price fell below that level (source: @EmberCN on X, Oct 17, 2025).

According to @business, Bitcoin’s slight rebound after Friday’s crypto crash has not eased an approximately 20 billion dollar leveraged-bet purge that crippled parts of the crypto market, indicating conditions remain fragile and impaired in segments of trading infrastructure and positioning, source: @business. According to @business, the ongoing deleveraging pressure despite BTC’s bounce signals that leveraged positions and related market activity remain under stress, source: @business. According to @business, traders should maintain conservative leverage and tight risk controls until the purge abates and market functioning improves as characterized by the source, source: @business.

According to @glassnode, Bitcoin futures markets experienced the largest single-day open interest wipeout on record, with over $11B in positions cleared (source: @glassnode). @glassnode notes that the magnitude of this deleveraging highlights how quickly excessive leverage can unwind during volatile conditions, underscoring key risk for futures traders (source: @glassnode).

According to @caprioleio, the crypto market just saw the biggest liquidation cascade since 2021, with perpetual futures open interest down roughly $8.5 billion within hours (source: @caprioleio on X, Oct 10, 2025). A rapid decline in open interest typically signals mass position closures and deleveraging across derivatives markets, reducing outstanding exposure (source: CME Group Education, Open Interest overview). Such deleveraging can compress funding rates and amplify short-term price swings as forced liquidations cascade through order books (source: Binance Academy, Funding Rate Explained; Binance Academy, What Are Liquidations). Traders may prioritize lower leverage, disciplined position sizing, and close monitoring of funding and open interest metrics to navigate elevated volatility and slippage during liquidation events (source: Binance Academy, Risk Management in Crypto Trading; Investopedia, Slippage).

According to @DegenerateNews, more than $5 billion in crypto positions were liquidated over the past 24 hours. Per Binance Academy, large liquidation waves typically reflect cascading margin calls in perpetual futures, which can magnify short-term volatility and widen bid-ask spreads, making execution riskier for BTC and ETH. According to CME Group educational materials, traders assess deleveraging by monitoring funding rates and open interest, with declining open interest indicating risk being flushed from the system and a potential setup shift. According to Coinglass documentation, liquidation dashboards help verify whether long or short liquidations dominated, providing directional context for BTC and ETH intraday bias.

According to @EmberCN, a large ETH trader reduced exposure as price neared their liquidation threshold, closing approximately 9,459 ETH around USD 4,370 for about USD 41.33 million, source: @EmberCN on X. The trader’s liquidation price has shifted below USD 4,300 after the partial close, lowering immediate forced-liquidation risk at that level, source: @EmberCN on X. For trading setup, the execution zone near USD 4,370 can act as a pivot for intraday order flow, while the sub-USD 4,300 liquidation threshold is a key downside area to monitor for potential cascades if retested, source: @EmberCN on X. This deleveraging event may ease short-term selling pressure from that account but keeps attention on ETH derivatives positioning and volatility risk, source: @EmberCN on X.

According to @bobbyong, sustained crypto uptrends require enduring tough liquidation days, meaning red-candle drawdowns and forced deleveraging are part of the path higher (source: Bobby Ong, X, Aug 25, 2025). For trading, this signals that volatility clusters around liquidations should be expected rather than uninterrupted green candles, informing risk management and position sizing (source: Bobby Ong, X, Aug 25, 2025).

According to @52kskew, BTC spot TWAP selling continues to dominate price action, while a significant amount of short positions were closed and many longs were deleveraged around the $112K level. This price point is now considered pivotal for traders, as further movement above or below $112K could signal the next major trend in the BTC market (source: @52kskew).

According to @EmberCN, despite significant selling pressure from some large entities, overall buying activity for Ethereum (ETH) remains much stronger. This week, Trend Research sold 79,000 ETH, valued at approximately $250 million, at an average price of $3,140 to deleverage its positions, as noted by the source. Additionally, another major whale or institution, known for previously making $30.45 million in profit from ETH swing trades, sold 30,000 ETH for $96.13 million at an average price of $3,204. However, @EmberCN emphasizes that these sales are being overshadowed by more powerful buying pressure, suggesting the market is effectively absorbing the sell-offs and maintaining a bullish underlying sentiment.

According to @EmberCN, the entity Trend Research has transferred a total of 32,519.7 Ethereum (ETH), valued at approximately $101.95 million, to Binance for selling purposes. Following the deposit, the entity withdrew 50.6 million USDT to repay loans and deleverage its positions. This large-scale movement suggests significant selling pressure on ETH and a strategic move by a major holder to reduce risk.

According to @EmberCN, the secondary investment firm @Trend_Research_, associated with @Jackyi_ld, has begun taking profits on its Ethereum (ETH) holdings as the price surpassed the $3,100 level. The firm transferred 17,289 ETH, valued at approximately $52.84 million, to the Binance exchange. Subsequently, they withdrew 19.11 million USDT to repay loans that were used to acquire their ETH position with 2x leverage on platforms like Aave. This move signifies a strategic deleveraging and profit-taking action by a significant market player, potentially impacting short-term market sentiment for ETH.

According to EmberCN, the whale nemorino.eth, previously bearish on ETH, has started buying back ETH, purchasing 3,000 ETH for 571.8 million USDC at a price of $1,906 two hours ago. This move comes after selling 10,828.5 ETH at $2,586 in early February to deleverage, anticipating a price drop, which subsequently saw ETH fall to $1,800.

According to Edward Dowd, despite the market being only 6% down from its highs, there's notable deleveraging occurring in long/short hedge funds. The 6-month momentum factor has lost over 2 years of gains in just 13 days, indicating a rapid shift in market dynamics.

According to IntoTheBlock, short-term traders’ account balances have dropped to levels not seen since October 2024, indicating significant deleveraging in the cryptocurrency markets. This on-chain metric suggests a reduction in speculative positions, potentially stabilizing the market for future upward movements.

According to @glassnode, memecoins PEPE, BONK, and WIF have experienced significant deleveraging with PEPE reducing by 71.93% from $1.25B to $351M, BONK by 75.10% from $715M to $178M, and WIF by 69.83% from $653M to $197M. The open interest (OI) in these assets has cooled off following previous speculative peaks, indicating a substantial reduction in leveraged positions.

According to @EmberCN, whale nemorino.eth sold 10,828.5 ETH for $28 million USDC to repay a loan on Aave, with an average selling price of $2,586 per ETH. After clearing the debt, the whale still holds 8,833.4 ETH valued at $23.26 million. Such deleveraging by a whale is typically seen as a bearish signal.