The cryptocurrency market experienced a severe flash crash on Sunday, September 22, 2025, resulting in over $1.7 billion in leveraged position liquidations within a short timeframe. The sell-off was particularly intense between approximately 6:30 and 7:30 UTC, marking one of the most significant single-hour liquidation events of the year.
Bitcoin plummeted to $112,000, losing more than $5,500 from its Sunday high of around $115,600 and reaching its lowest level since September 10. Ethereum followed with steep declines, briefly falling below $4,050 before recovering slightly to $4,200. Altcoins suffered even more dramatic percentage losses, with tokens like CRO and HYPE dropping 7-8%, while larger caps including XRP also saw significant declines.
Data from CoinGlass confirmed that long positions accounted for the vast majority of liquidations, as traders betting on continued price gains were caught off guard by the sudden reversal. Ethereum led the liquidation tally with over $470 million, while the single largest liquidated position was worth nearly $13 million. More than 400,000 traders were affected within 24 hours.
Analysts attributed the crash to thin weekend liquidity combined with excessive leverage in the market. Traders using 20x to 50x leverage faced automatic liquidations as even small price moves escalated into outsized losses. Exchanges including Binance, OKX, and Bybit reported significant liquidation volumes, reflecting the market's heavy reliance on leveraged trading.
The event occurred against a backdrop of macroeconomic uncertainty regarding global central bank policies and geopolitical tensions. While some traders see the correction as a potential buying opportunity after weeks of steady rallies, analysts warn that volatility remains elevated due to high open interest in crypto futures, setting the stage for potential repeat liquidation events.