XRP Flash Crash Wipes Out $500 Million as Crypto Market Liquidates

XRP's price plummeted by 37% on August 22, in what is being referred to as a brutal flash crash. The sudden drop was triggered when roughly $500 million in leveraged long positions were liquidated across the crypto market within minutes.

The move came just days after XRP had rallied more than 60% over the past week, leaving traders dangerously overexposed. According to Coinglass data, a wider timeframe shows that $1.35 billion was liquidated from the crypto market over the past 24 hours, with the bulk of the activity concentrated on Binance.

Crypto analyst CW attributed the crash to high leverage, thin weekend liquidity, and excessively bullish positioning. Some traders describe it as manipulation, while others call it simple deleveraging that the market needed.