World Liberty Financial's WLFI token has experienced a dramatic price collapse since its public debut on Monday, September 1, 2025, falling 38% from its initial trading price of $0.329 to below $0.19 by Thursday. The decline accelerated with a 15% drop in 24 hours, wiping out millions in leveraged positions held by major investors.
Whale liquidations dominated the market movement, with one major wallet closing a 3x leveraged long position and realizing a $1.635 million loss. Another trader, identified as 0x1527, faced unrealized losses exceeding $2.2 million on Hyperliquid. Meanwhile, short sellers profited significantly, with wallet 0x92bb making $1.8 million from bearish positions. Influencer Andrew Tate was also reportedly liquidated for $67,500.
Derivatives markets drove the downturn, with $139 million in open interest outflows recorded in a single day as investors closed positions to avoid liquidation risks. Trading volume plummeted by $994 million to $5.14 billion, signaling weak momentum. Long positions bore the brunt of liquidations at $15.05 million compared to $4.79 million for shorts.
The project attempted to stabilize markets by burning 47 million WLFI tokens (0.16% of circulating supply) on Wednesday, but the effort failed to halt the selloff. Sentiment rapidly deteriorated, with nearly 30% of holders expressing negative views, ranking WLFI as the ninth-most bearish among top 100 cryptocurrencies.
