Cryptocurrency traders suffered a loss of $3.79 million after unexpectedly updating the leverage and margin layer of selected tokens.
One of the affected tokens was ACT I (ACT), with the trader’s $3.79 million position being liquidated at $0.1877. Lookonchain April 1st.
After the liquidation, one of the biggest of the day, ACT, experienced a significant price drop. At the time of reporting, the token was trading at $0.1018. It was down 46% over the past 24 hours, almost 50% in the weekly time frame.
This price collapse exacerbated the losses for those holding leveraged positions.
In particular, the ripple effects of ACT liquidation have expanded beyond the token itself, affecting the broader Altcoin market, particularly those related to the Artificial Intelligence (AI) project.
Binance Futures Update
The trading platform has revealed changes to its blog post and announced leverage and margin tier updates for several USD-M permanent contracts, including 1000Satsusdt, Actusdt, Pnutusdt, Neusdt, Neusdt, Neusddc, Turbousdt and Mewusdt. In particular, the changes intended to adjust the risk parameters of futures trading in these tokens came into effect on April 1, 2025 at 10:30 UTC.
However, updates come with a warning that existing positions will be opened before the update is affected, and futures running on the grid may expire due to new leverage and margin layers.
Interestingly, the world’s largest crypto trading exchange advised users to review and change their positions to avoid potential liquidation. Therefore, it can be interpreted as a surprise catching the whale trader in question.
It is noteworthy that leverage allows traders to control larger positions with less capital, but it also amplifies risk.
The margin layer, on the other hand, determines the collateral required based on leverage and position size. Exchanges like Binance adjust these layers affect leverage limits and liquidation thresholds. If the trader’s position no longer meets the requirements, it can be forced to liquidate and lead to further losses.
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