The cryptocurrency market experienced a brutal wave of selling pressure on Thursday, leading to one of the most significant liquidation events in recent months. Overleveraged bullish traders were decimated as more than $1.15 billion in positions were forcibly closed across major exchanges. The market flush was severe, with long positions accounting for over $1 billion of the total losses, indicating that recent optimism had led to excessively risky positioning. According to data from Coinglass, the turmoil affected over 247,000 individual traders in a single 24-hour period, highlighting the widespread impact of the sudden downturn. The catalysts for the sell-off were multifaceted, including growing geopolitical tensions in the Middle East which drove investors away from risk assets and towards safe havens like gold.

Bitcoin Whale Wiped Out in $200 Million Liquidation

At the heart of the market chaos was a single, colossal loss on the Binance exchange. One unidentified trader or firm saw their $200 million Bitcoin (BTC) long position liquidated, marking one of the largest individual forced sales of the year. While the identity behind the position remains private, the event underscores the high-stakes leverage being employed in the current market. The cascading effect of such a large liquidation likely exacerbated the price decline for BTC, which shed over 3% during the session. The pain was not confined to Bitcoin; Ethereum (ETH) plunged a staggering 8%, falling to the $2,530 level. Other major altcoins followed suit, with Solana (SOL) and Dogecoin (DOGE) also sinking by over 8%, while XRP fell sharply to trade around $2.20. Data confirmed that exchanges Binance and Bybit were the epicenters of the carnage, accounting for a combined total of over $834 million in liquidated trades.

Singapore Clamps Down on Offshore Crypto Firms

While traders were reeling from market volatility, regulatory pressures were also mounting in Asia. The Monetary Authority of Singapore (MAS) announced a significant policy shift on June 6, effectively ending the practice of using the city-state as a registration hub for crypto firms that operate exclusively overseas. In its updated guidance, the MAS confirmed that Digital Token Service Providers (DTSPs) catering only to foreign clients will be required to obtain a full license to operate, with the new rules taking effect on June 30. This move has prompted several exchanges, including Bitget and Bybit, to reassess and shut down certain operations to comply with the stricter oversight.

Regulatory Response to 3AC and Terraform Labs Collapse

This regulatory tightening in Singapore was not unexpected for close market watchers. The move appears to be a direct response to the high-profile collapses of Terraform Labs and Three Arrows Capital (3AC), two entities that were domiciled in Singapore but had minimal physical presence or operational ties to the country. These failures caused significant reputational damage to Singapore, as the MAS was perceived as the overseeing regulator despite having limited jurisdiction over their global activities. For instance, Terraform Labs largely operated out of co-working spaces, and 3AC was reportedly moving its base to Dubai before its implosion. By closing this regulatory loophole, the MAS is sending a clear message: any firm wishing to leverage Singapore's stable and respected reputation must submit to its comprehensive regulatory framework. This action is part of a broader global trend where financial regulators are working to eliminate arbitrage opportunities and bring the crypto industry under tighter control, forcing greater accountability and transparency.