According to Tobias Robinson, CEO of DayTrading.com, leveraged traders suffered the biggest losses following the $6.3 billion Binance hack. Bitcoin fell nearly 5% within hours, triggering approximately $1.68 billion in liquidations across crypto exchanges, including $1.43 billion in long positions and 256,000 liquidated traders. More than $600 million in positions were liquidated within an hour of the breach being reported, as forced selling pushed prices lower and triggered further liquidations. Robinson estimates that a 20-times leverage position can be wiped out by a roughly 5% price decline, compared with 10% at 10-times leverage and 20% at 5-times leverage, although maintenance margin requirements and trading fees typically narrow those margins.
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