Q4 2025 has proven to be unforgiving for many traders and leveraged positions. The fourth quarter saw a cascade of liquidations that wiped out billions in notional value across major exchanges.
This brutal period highlighted the dangers of overleveraged trading during volatile market cycles. Several factors converged to create the perfect storm: sudden price movements, funding rate spikes, and thin liquidity pockets that amplified cascading liquidations.
The ten most significant liquidation events of the quarter demonstrate just how exposed certain positions had become. Long liquidations dominated in some instances, while others saw massive short squeezes trigger capitulation across the board.
These liquidation cascades serve as a stark reminder of risk management fundamentals. Even institutional traders faced significant losses when positions weren't properly hedged or sized according to market conditions.
Looking back, traders who survived Q4 were those who maintained disciplined position sizing and respected market volatility. The quarter proved once again that leverage amplifies both gains and losses—sometimes catastrophically.
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MetaverseMigrant
· 9m ago
Leverage players are really playing with fire, greed is never satisfied and tries to swallow the elephant
A single all-in and it's gone, this liquidation is at a delete-account level
The brothers who got liquidated in Q4 should reflect on this
Another painful lesson, yet they have to tear their clothes to wake up
That's why I only stick to conservative strategies... mindset determines everything
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SerumSurfer
· 11h ago
Leverage players all got wiped out in Q4, I just honestly hold my position, so satisfying.
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CryptoDouble-O-Seven
· 11h ago
Leverage players have wiped out another round, but unfortunately, it's none of my business.
The Top 10 Liquidation Events That Shook Q4 2025
Q4 2025 has proven to be unforgiving for many traders and leveraged positions. The fourth quarter saw a cascade of liquidations that wiped out billions in notional value across major exchanges.
This brutal period highlighted the dangers of overleveraged trading during volatile market cycles. Several factors converged to create the perfect storm: sudden price movements, funding rate spikes, and thin liquidity pockets that amplified cascading liquidations.
The ten most significant liquidation events of the quarter demonstrate just how exposed certain positions had become. Long liquidations dominated in some instances, while others saw massive short squeezes trigger capitulation across the board.
These liquidation cascades serve as a stark reminder of risk management fundamentals. Even institutional traders faced significant losses when positions weren't properly hedged or sized according to market conditions.
Looking back, traders who survived Q4 were those who maintained disciplined position sizing and respected market volatility. The quarter proved once again that leverage amplifies both gains and losses—sometimes catastrophically.