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Flash

Tread.fi CEO: The flash crash of perpetual contracts for AI concept stocks in the U.S. stock market began at Binance, leading to a chain of liquidations

The trading execution platform Tread.fi CEO DYJ published an analysis of the flash crash of AI concept stocks' perpetual contracts in the US stock market early in the morning, stating that the sell-off began at Binance. A trader liquidated approximately 2 million dollars of SanDisk long positions, triggering a sharp decline in other markets due to the thin depth of the order book.According to the transaction timeline listed, a large amount of active selling first appeared on SNDK at Binance, with a transaction amount of about 407,000 dollars in the first second, followed by about 1,030,000 dollars in the next second, and MU also began to see selling in the same second. Hyperliquid then saw sweeping orders, with about 10 addresses submitting IOC sell orders concentrated on SNDK, SOXL, DRAM, SKHX, SKHY, and MU within 1.8 seconds, followed by a second round of synchronized selling. These orders were all used to open new short positions, rather than just reducing positions.In the minute of the first concentrated selling, the transaction amounts for SNDK and MU on Binance were approximately 21.9 million dollars and 5.1 million dollars, respectively, while the corresponding transaction amounts on Trade.xyz were about 3.1 million dollars and 300,000 dollars. The transaction amount for MU on Hyperliquid subsequently expanded to 10.8 million dollars and 9.5 million dollars within the next two minutes, which DYJ attributed to chain liquidation.

first_img During the Wall Street market closure, chip stock contracts were liquidated for 52 million dollars in just 10 minutes

According to CoinDesk, during the market closure on Saturday, leveraged bets linked to chip stocks and semiconductor funds were liquidated for nearly $52 million within 10 minutes. According to CoinGlass data, approximately $51.6 million in chip stocks and semiconductor fund-related positions were forcibly closed between 21:22 and 21:32 UTC, of which about $38 million came from bullish bets on rising prices. The sell-off began at Binance and quickly spread to Hyperliquid within seconds.The SOXL contract, which is three times long on chip stocks, suffered the largest loss, approximately $12.7 million; contracts for SanDisk and SK Hynix each lost about $10.8 million. According to David Jeong, CEO of trading firm Tread.fi, he placed the first large sell orders for SanDisk and Micron on Binance at 21:21:59 UTC, and less than a second later, the orders impacted Hyperliquid—this platform, launched by Trade XYZ, tracks contracts for stocks, with about 10 addresses establishing short positions on 6 chip-related contracts within 1.8 seconds. In the first minute, Binance processed approximately $21.9 million in SanDisk trades, while Trade XYZ accounted for $3.1 million.Storage chip stocks had already experienced a tumultuous week due to new competition from Chinese chip manufacturer CXMT. With the stock market closed, these contracts had no real stock prices for reference, and traders could only compete against each other; the rules of Trade XYZ allow the platform to set reference prices independently before external stock quotes resume, with relevant quotes returning when U.S. stocks open on Monday.

first_img Claude of Anthropic cracked the 25-year puzzle of NSA's elliptic curve

Anthropic's AI model Claude cracked a 25-year-old puzzle in the field of cryptography in less than 30 minutes, tracing a set of numbers provided by the National Security Agency (NSA) to the U.S. government in the late 1990s back to a common random number generator that used timestamps from 1997 and 1998. These numbers have long been suspected of hiding a backdoor.In 2000, the National Institute of Standards and Technology (NIST) adopted a set of elliptic curves provided by the NSA, but the NSA never explained where the partial numbers (seeds) used to generate these curves came from. After Edward Snowden disclosed that the NSA had attempted to undermine cryptographic standards, suspicions about its hidden backdoors intensified. Cryptographers Neal Koblitz and Alfred Menezes discussed this controversy in a 2015 paper, and security researcher Steve Weis spent years searching for answers. In 2023, Filippo Valsorda and others even set up a bounty for this.Claude traced the five NIST curve seeds back to the random number generator lrand48 in an old C software library and reproduced the widely used P-256 curve sequence, finding an exact match with the published seeds among the 1842 candidates. Anthropic stated that this significantly reduces the possibility of hidden weaknesses, and users of NIST curves do not need to make any changes. Bitcoin is unaffected, as its wallets use the simpler secp256k1 curve, which has almost no room for secretly implanted weaknesses. The bounty of $36,864 will be donated to the nonprofit organization Internet Security Research Group behind Let's Encrypt.

Deepsigma launches a DeFi perpetual contract platform covering 77 traditional financial markets

The decentralized perpetual contract exchange Deepsigma has launched a real-time simulation trading platform, covering 77 traditional financial markets, including U.S. stocks, stock indices, commodities, and U.S. Treasury yield rates. The platform is developed based on the Cypherium blockchain, driven by a team of alumni from Goldman Sachs, Citadel Securities, Google, and Uber, supporting long and short exposure trading of related assets.Deepsigma's perpetual contracts do not tokenize, custody, or physically deliver the underlying assets but instead track prices through external market data sources. The platform currently supports the S&P 500 Index, Dow Jones Industrial Average, Nasdaq Composite Index, Russell 2000 Index, Cboe Volatility Index, as well as contracts for crude oil, gold, silver, natural gas, and copper. The platform's risk engine employs multiple external price sources, mark prices, circuit breaker mechanisms, partial liquidation, and insurance funds, and uses a central limit order book and clearing layer to handle margin, collateral, and settlement.Deepsigma is also developing a decentralized identity framework based on zero-knowledge proofs and configuring off-chain AI analysis tools with no fund execution permissions; the underlying Cypherium utilizes a hybrid PoW and HotStuff Byzantine Fault Tolerance consensus mechanism, holding 4 U.S. patents.

first_img SEI perpetual contracts launched on the CFTC regulated OG.com market

According to The Defiant, the perpetual contract for Sei Network's native token SEI has been launched for trading on OG.com Markets. The exchange is operated by the North American Derivatives Exchange (Nadex) and is regulated by the U.S. Commodity Futures Trading Commission (CFTC), providing U.S. investors with a compliant channel to access SEI with leverage. Sei officially stated that this is "another compliant way to acquire SEI."The contract was self-certified by the exchange on October 8, and the CFTC product registry has listed it as a certified product, originally scheduled to be listed on October 12. Trading records from October 16 show two transactions of 100 SEI each at 4:54 PM Eastern Time on that day. The contract is settled in U.S. dollars and has no expiration date, allowing traders to maintain long or short positions without rolling over. Clients must access through a CFTC-registered futures commission merchant or an associated introducing broker.Each contract represents 1 SEI, with a minimum trading unit of 100 contracts, and trading occurs around the clock. The funding fees for both long and short positions are calculated every eight hours, with a maximum rate of 2% per period, aimed at aligning the futures price with the CF Sei-Dollar spot rate managed by CF Benchmarks. The contract is settled twice daily at noon and 5 PM Eastern Time. Traders are required to pay the initial margin based on the risk benchmark in U.S. dollars, and the exchange's notification indicates that the initial margin range for its crypto perpetual contract product line is between 15% and 30%.
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