LIGHT's Dramatic 700% Rally Followed by Devastating 77% Collapse Triggers $32 Million in Liquidations

ChainSauceMaster · 2026-01-12T07:36:57+00:00

Bitlight Labs' LIGHT token saw a dramatic 700% rise before a 77% fall within 24 hours, leading to significant liquidations, particularly impacting bearish traders. This volatility underscores the risks associated with altcoins during extreme price fluctuations.

ChainSauceMaster

2026-01-12 07:36:57

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According to market data, Bitlight Labs’ LIGHT token experienced an extraordinary volatility event within a 24-hour window, skyrocketing approximately 700% before suffering a sharp 77% pullback. The token initially traded around $0.32 (UTC+8, January 1st) before rallying to peak levels near $2.50 around 18:45, only to witness a dramatic reversal approximately one hour later that sent it crashing down to $0.5287. The token is currently quoted at $0.61, reflecting recent stabilization attempts.

Scale of Liquidations Highlights Market Risk

The extreme price movement triggered significant liquidation events across derivatives markets. Per Coinglass data, LIGHT accounted for $32.11 million in total liquidations over the 24-hour period—a figure surpassed only by Bitcoin’s $47.85 million, underscoring the token’s outsized impact despite its lower market cap. The liquidation breakdown reveals $19.71 million in short positions liquidated against $12.39 million in long liquidations, indicating that bearish traders bore the brunt of the volatility.

Market Context

This episode serves as a stark reminder of the risks inherent in highly volatile altcoins, particularly during periods of extreme price discovery. LIGHT’s ability to generate liquidations comparable to major assets reflects both the size of positions accumulated and the velocity of price movements experienced during this event.

LIGHT-0,47%

BTC2,05%

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