Cryptocurrency traders found themselves grappling with substantial losses, exceeding $100 million, due to liquidations on Oct. 9 amid a slight market downturn indirectly caused by the escalating conflict in the Middle East.

Long positions worth $105 million were obliterated on Monday, according to data from CoinGlass. This figure marked the most significant single-day long liquidation event since Sept. 11, when more than $256 million was liquidated.

Cryptocurrency markets were sent into a tailspin as escalating tensions between Israel and Hamas, coupled with rising turmoil in the region, rattled investors and dampened risk appetite. Bitcoin (BTC), the leading digital asset, bore the brunt of the turmoil, initially plummeting by over 2% before making a slight recovery to reach $27,600.

Meanwhile, Ether (ETH) experienced a nearly 5% decline, while other prominent cryptocurrencies like Solana (SOL), Polygon’s native token (MATIC), and Polkadot’s (DOT) saw substantial dips ranging from 6% to 7%.

However, there was a partial rebound in prices later, indicating the crypto market’s characteristic volatility amidst geopolitical uncertainties. Investors found themselves on a rollercoaster ride, with digital asset values swinging dramatically in response to the evolving situation in the Middle East.

Liquidations are a repercussion of leveraged trading positions being forcibly closed by exchanges. This happens when traders experience a partial or total loss of their initial funds, known as “margin,” either because they fail to meet the required margin requirements or lack sufficient funds to sustain the open position. Essentially, when the trader’s available funds fall below the necessary threshold, exchanges step in to safeguard against further losses by liquidating the position. This essential mechanism serves as a protective measure, ensuring both traders and the market maintain stability amidst the volatile nature of crypto trading.

Ether derivatives traders bore the weight of substantial losses as plummeting prices led to the liquidation of $32.78 million worth of long positions within the past 24 hours, as reported by CoinGlass. Among the numerous liquidation incidents, the most significant single order involved a staggering $4.5 million ETH-BUSD long position on Binance.