A large short position executed during off-hours drove EdgeX’s Nasdaq 100–linked XYZ100 perpetual sharply lower over the weekend, underscoring the risks of trading equity-index derivatives when traditional markets are closed.
The move resulted in roughly $13 million in liquidations after a newly created wallet placed a sizable short, according to onchain data from Hypurrscan. Thin weekend liquidity magnified the selling pressure, accelerating losses across leveraged long positions.
On Saturday, the wallet began a six-hour time-weighted average price (TWAP) order to short 398 XYZ100 contracts, valued at approximately $10 million. The sustained sell flow pushed the contract more than 3.5% lower in a short period, triggering a liquidation cascade.
Liquidations occur when leveraged positions are automatically closed once losses reduce collateral below maintenance thresholds. Blockchain data shows one trader was liquidated for about $7.4 million, while another lost roughly $2.7 million, bringing total liquidations in the market to around $13 million.
The sharp weekend decline prompted debate among traders on X, with some questioning whether the move reflected market manipulation during off-hours, noting that XYZ100 slid nearly 4% without any corresponding macroeconomic or equity-market news. Others argued the price action reflects the inherent risks of trading equity-linked perpetuals outside normal market hours.
“On weekends, you’re not trading the Nasdaq,” one trader wrote. “You’re trading whoever controls liquidity.”
EdgeX has rapidly expanded into one of the largest perpetual futures trading platforms. According to DefiLlama data, the exchange processed approximately $167 billion in perp trading volume last month, often rivaling competitors such as Aster and Hyperliquid.
The episode highlights both growing demand for tokenized equity exposure and the structural risks associated with derivatives designed to track markets that are closed.
