A recent liquidation event impacted a $BNB Binance Coin short position valued at $63,700 triggered when the token’s price reached $637.20 .
In this case the trader had placed a short position wagering on a decline in BNB price anticipating that it would fall rather than rise. However as BnB price climbed to $637.20 the position was forcibly closed by the platform resulting in an automatic liquidation to mitigate potential further losses.
In leveraged trading liquidations like these serve as a safeguard to prevent larger losses if the market goes against the trader's expectations.
Here the upward price movement led to the trader’s position closing at a loss as the market moved contrary to their prediction.
