OKX Markets Witness $1.7B Liquidation Cascade as Bitcoin Breaks Critical Support

On September 22, 2025, cryptocurrency markets experienced one of the most severe deleveraging events in recent months as Bitcoin tumbled below critical technical support levels, triggering a cascade of liquidations exceeding $1.7 billion. The flagship cryptocurrency declined 1.19% to $114,345 amid a broad 2.4% sector-wide decline, affecting more than 407,000 traders across major exchanges including OKX. The selloff intensified dramatically within a single hour as approximately $1.07 billion worth of leveraged positions evaporated, highlighting the extreme volatility and risk management challenges in current market conditions. This liquidation event represents a significant stress test for trading platforms and risk management systems, with OKX and other major exchanges managing the high-volume liquidations while maintaining market stability. The rapid price movement below key support levels demonstrates how quickly market sentiment can shift in cryptocurrency markets, particularly when leveraged positions become forced sellers during downward price movements. Market analysts are closely monitoring whether this liquidation event represents a healthy market correction or the beginning of a more sustained bearish trend, with particular attention to how exchanges like OKX handle such volatility spikes and protect trader interests during extreme market conditions.

Bitcoin Breaks Key Support as $1.7B in Leveraged Positions Evaporate

Bitcoin tumbled below critical technical levels, triggering a cascade of liquidations across crypto markets. The flagship cryptocurrency slid 1.19% to $114,345 amid a broad 2.4% sector decline, marking one of the most severe deleveraging events in recent months.

Over $1.7 billion in Leveraged positions vaporized, affecting more than 407,000 traders. The selloff intensified within a single hour as $1.07 billion worth of contracts unwound—$1.05 billion from long positions betting on price appreciation, dwarfing the $27 million in short position losses.

Ethereum bore the brunt with $308.22 million liquidated, while Bitcoin saw $214.25 million in forced closures. The OKX exchange recorded the largest single liquidation: a $12.74 million BTC-USDT-SWAP position.

Technical factors converged with whale movements and excessive leverage to drive the downturn. Bitcoin's breach of the $115,400 support level activated algorithmic selling, while its failure to hold the 30-day moving average signaled weakening momentum. The Relative Strength Index flashed oversold conditions as the market digested the flush-out.

OKX Delays Perpetuals DEX Launch Amid Regulatory Crackdown

OKX has postponed the launch of its decentralized perpetuals trading platform, citing mounting regulatory risks. The decision follows heightened scrutiny from the U.S. Commodity Futures Trading Commission (CFTC), which has recently targeted similar platforms for offering unregistered derivatives.

CEO Star Xu confirmed the delay in a public statement, noting the exchange had extensively tested the platform since 2023. The CFTC's enforcement actions against Deridex, Opyn, and ZeroEx appear to have influenced OKX's cautious approach. While the mainnet remains shelved, the exchange continues monitoring regulatory developments for future opportunities.