Binance hack losses hit leveraged traders hardest, DayTrading.com CEO says

Tobias Robinson said leveraged traders suffered the biggest market losses following the $6.3 billion Binance breach, despite the exchange's pledge to cover stolen funds. The biggest market losses following the record $6.3 billion Binance hack fell on leveraged traders rather than customers whose assets were stolen, Tobias Robinson, CEO of DayTrading.com, said in commentary shared with Crypto Briefing. Binance has pledged to cover the stolen assets using company reserves, protecting customer balances. However, the market selloff following the October 29 breach triggered approximately $1.68 billion in liquidations across crypto exchanges, including $1.43 billion in long positions. Around 256,000 traders were liquidated as Bitcoin dropped nearly 5% within hours. Robinson said the decline was enough to wipe out traders using 20x leverage, with forced selling pushing prices lower and triggering additional liquidations. More than $600 million in positions were liquidated within an hour of the news, he said, illustrating how leveraged positions can amplify sudden market declines. Robinson warns against excessive leverage Robinson said traders can estimate their liquidation threshold by di...