XRP Derivatives Market Reset: $1.9B Long Squeeze Obliterates Positions

XRP derivatives markets undergo brutal reset as coordinated long positions get liquidated in massive squeeze event.

The $1.9B Wipeout

Nearly two billion dollars in leveraged long positions evaporated within hours as XRP price action triggered cascading liquidations across major exchanges. The squeeze caught over-leveraged traders off guard, forcing mass position closures amid volatile market conditions.

Market Mechanics Exposed

Derivatives markets reset to cleaner positioning levels as weak hands get flushed from the system. The massive liquidation event demonstrates the inherent risks of excessive leverage in crypto markets—where fortunes can disappear faster than a banker's promise during bull market season.

Post-Squeeze Landscape

With overleveraged positions cleared, XRP derivatives markets now face recalibration as surviving traders reassess risk parameters. The reset creates potential for healthier price discovery, though the sting of $1.9B in losses serves as another expensive lesson in crypto volatility management.

$XRP Futures OI Plummets by 65.5% as Market Incurs $1.9B Wipeout

In line with the on-chain statistics, the liquidation of a stunning $1.9 billion in XRP ($XRP) long positions between the 6th and 18th of October has severely impacted the market. As a result of this, the open interest (OI) in XRP ($XRP) has slumped from $2.9 billion to just $1B. This broader cascade accounts for a 65.5% drop.

Market Reset Denotes Likely Q4 Rebound Following Derivatives Purge

According to CryptoOnchain, the plunge in $XRP’s open interest (OI) is now going through a notable drop after the key peaks witnessed during 2025. Driven by the squeeze cascade in the $XRP long positions, the current reset is noteworthy after sentiment fluctuations over the past months. However, this purge could lead to a robust rebound as soon as the market stabilizes, but it remains to be seen over the remainder of the Q4.