Kaspa just went through its biggest liquidation event to date. Leveraged long positions worth over $3.4 million were wiped out in a single move, far surpassing anything seen before on the chart.
The flush showed how overcrowded bullish bets had become. It also left KAS trading near $0.08, down around 45% over the past year.
The liquidation data shows an extreme spike in long positions being closed out, while shorts barely moved. The imbalance highlights how heavily traders were leaning bullish – and how fragile that positioning was once price pressure turned against them.
Kaspa just experienced the largest long liquidation event in its recent history.
— Kaspa Daily (@DailyKaspa) September 6, 2025
Leveraged longs were flushed out at a scale never seen before, showing how crowded positioning had become.
The wipeout resets the board: weak hands are out, funding rates will cool off, and new… pic.twitter.com/9A34uJVZ7j
With more than $3.4M in longs liquidated at once, Kaspa experienced its biggest leverage reset in recent history. These kinds of events often clean the market, clearing overextended positions and cooling overheated funding rates.
Network Activity Surges Despite Price Drop
Interestingly, Kaspa’s network metrics tell a different story. Daily active addresses jumped to 135,000, while transactions surged to 427,000 – both major spikes compared to the past week.
Another notable spike in network activity:
— Kaspa Daily (@DailyKaspa) September 8, 2025
Kaspa daily active addresses climbed to 135,000, while the number of transactions surged to 427,000. pic.twitter.com/GU9p2bOs1t
This suggests that while traders faced forced exits, underlying network activity is accelerating. It shows that Kaspa’s blockchain is still gaining traction in terms of real usage, even as speculative price action struggles.
Read also: Kaspa Price Stalls: Analyst Reveals KAS Trading Strategy That Could Pay Off Big
Short-Term Outlook
Right now, Kaspa is sitting at a crossroads. On one hand, the price is weak, hovering near $0.08 after a year-long decline. On the other, the network itself is experiencing record activity.
The record $3.4M liquidation event may have flushed out weak hands, giving the market a chance to stabilize. If on-chain growth continues, it could form the base for a stronger recovery once leverage-driven volatility cools down.
For now, though, traders should expect turbulence. The liquidation spike proves how quickly crowded positioning can unravel – and how fragile sentiment remains.
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