A recent liquidation involved an $XRP short position worth $25,400 which was triggered when the token’s price hit $0.554.
The trader had bet against XRP expecting its price to decline. However as XRP price unexpectedly climbed to $0.554, the platform initiated an automatic closure of the position to control potential losses.
This type of forced liquidation is a protective measure in leveraged trading activated when the market moves against a trader's forecast. In this instance the price increase in $XRP led to the closure of the trade at a loss as the rising price went counter to the trader’s initial bet.
