Bitcoin Flash Crash Wipes Out $1.8 Billion in Leveraged Bets
Tap title to read story
Bitcoin suffered a sharp weekend reversal after surging near the eighty-thousand-dollar threshold, triggering a massive wave of liquidations across global derivatives markets. The cryptocurrency climbed to approximately seventy-nine thousand five hundred dollars on Saturday before dropping rapidly to settle near seventy-seven thousand dollars, representing a three percent retreat that dismantled highly leveraged positions. Derivatives tracking data from CoinGlass recorded hundreds of millions of dollars in forced liquidations within a single hour, pushing total twenty-four-hour liquidations to roughly one point eight billion dollars across more than two hundred eighty-six thousand accounts. The initial upward surge was catalyzed by U.S. Treasury Secretary Scott Bessent announcing plans to double long-dated government debt buybacks, injecting a risk-on signal that drove a broader market rally. However, relief faded as long-term yields rebounded, highlighting the extreme volatility risks posed by heavy leverage in digital asset trading.
Timeline
- On August 18, 2026, total United States public debt officially crossed forty trillion dollars.
- On August 19, 2026, Treasury Secretary Scott Bessent announced doubled long-dated buybacks.
- On August 20, 2026, Bitcoin prices surged past seventy thousand dollars amid squeezes.
- On August 21, 2026, long-term Treasury yields rebounded while hard-money assets extended gains.
- On August 22, 2026, Bitcoin approached eighty thousand dollars before encountering sharp resistance.
- On August 23, 2026, Bitcoin experienced a sudden flash crash settling near seventy-seven thousand dollars.
- On August 24, 2026, markets digested massive liquidations affecting hundreds of thousands of accounts.
- On September 9, 2026, the Treasury's expanded buyback schedule officially goes into effect.
- In coming months, macro yield fluctuations will continue dictating crypto price direction.
- In future years, regulatory clarity initiatives may reshape digital asset market structure.
Sources
JQJO Editorial Desk · Human reviewed · AI assisted. Report a correction.

























