Key Takeaways:
TUT, a memecoin on BNB Chain, logged $42 million in liquidations over 24 hours, the most of any crypto asset, after a 1,100% rally reversed.
CoinGlass data shows TUT accounted for roughly one-quarter of the $168.3 million in total crypto liquidations over the period, with short positions making up $112.5 million of the broader total. The token's forced closures surpassed both Bitcoin and Ethereum during the window.
The token climbed more than 1,100% in two days to an all-time high of $0.2903 on Aug. 9 after decentralized exchanges began listing TUT perpetual contracts with leverage of 5x and higher on Aug. 7. It has since fallen about 42% from that peak, with 24-hour futures volume of $3.34 billion — more than 23 times its market capitalization of about $140.5 million.
The rapid rise pressured traders betting against the token. As TUT moved higher, short positions became vulnerable to forced closures, adding to buying pressure and accelerating the rally. The subsequent reversal created the opposite dynamic: once the price began falling, leveraged long positions became increasingly vulnerable to liquidation, deepening the decline. Liquidations were concentrated on centralized exchanges including Binance and Bitget, with multiple individual short positions exceeding $1 million wiped out during the reversal, according to The Crypto Times.
TUT is the native token of Tutorial, an AI-powered blockchain education platform on BNB Chain that offers structured lessons on blockchain technology, decentralized finance and cryptocurrency through an AI tutor. The token has an unusual origin: it was initially created as part of a tutorial demonstrating how to launch a token on BNB Chain before being relaunched as a memecoin.
The whipsaw shows how high-leverage listings on low-cap tokens can trigger outsized liquidation events that spill into the broader market. When a single token generates more liquidations than Bitcoin and Ethereum combined, it raises questions about whether exchanges are doing enough to manage risk on volatile altcoin futures products. The episode could dampen near-term speculative appetite across the memecoin sector, where leveraged positions remain vulnerable to similar cascades.
This article is for informational purposes only and does not constitute investment advice.
