VELVET Crashes 74%, $5.8M Wiped: Longs Paid 83%, OI -44%

VELVET Just Lost Three Quarters of Its Value in Hours

VELVET traded at $0.91 early on Monday, and by the time this snapshot was taken it was changing hands at $0.1777 on Binance. That is a 73.9% drop in 24 hours, with the low printed at $0.156 and the current price sitting just 14% above that floor. The coin had been on a wild run over the weekend, pumping on thin leverage, and Monday morning turned that entire move inside out. Bybit quoted $0.1779 at the same moment, so the crash is not a single-exchange artifact; the whole perp market repriced at once.

$5.8M Liquidated, 83% of It Longs

Perp liquidations for VELVET reached $5.8 million over the last 24 hours, and 83% of that was long positions. A coin this size does not normally generate liquidation flows that big, so the wipeout tells you the crowd was leveraged up on one side. When price broke through the weekend base, the long cascade did the rest: each liquidation pushed price lower, which forced the next batch out. The short side only lost about $1 million in the same window, which is a reminder that the sellers were not getting squeezed, they were being proven right in real time.

Open Interest Collapsed 44% as Leverage Left the Book

Open interest fell 44.2% to $22.6 million during the crash. Binance OI was down 32.8%, Gate down 38.3%, and MEXC down 69% as the sharpest de-leveraging. Funding flipped negative on the majors: Binance was at -0.053% per 8 hours at snapshot time, Gate at -0.124%, meaning shorts now pay longs. That is the market pricing in more downside risk rather than a squeeze building. Hyperliquid is absent from the top venues for this coin, which keeps the liquidation math simpler than on bigger listings.

What the Crash Means for Anyone Watching VELVET

For traders, the message is simple: VELVET's move was a leverage event, not a trend. OI is still $22.6 million against spot volume that barely supports it, so volatility will stay elevated. A coin that drops 74% in a day can bounce hard on a short squeeze, but the funding and OI data say the leverage reset is still working through. Anyone holding perps should expect wide swings until OI stabilizes around a level that matches real spot volume. The useful number to watch is not the price itself but the OI chart: when open interest stops falling on bounces, the flush is likely done.

Data as of Beijing time 2026-08-25 01:15, covering Binance, Bybit, OKX, Gate, Hyperliquid, Bitget and other major exchanges.