Solana Million-dollar Liquidation Poses Threat to Price: Details

Solana

Solana network was successfully restarted after six-hour outage

a solana The $2.5 million long contract on the verge of liquidation became the subject of attention after a six-hour network outage on October 1. The Solana network stopped processing transactions at some point, leaving users stuck.

Colin Wu reports, “Solana has been down for nearly 5h, and validators are currently coordinating an attempt to restart. There is a long contract with nearly 2.5m in the Mango market that is in the liquidation range. However, the holder can neither add margin nor liquidate.”

The estimated liquidation value for the contract was $33.04. However, with the SOL value below this point, the position was dangerously close to expiring. A crypto user named Wish Capital, who posted a screenshot of the long position, also noted that bids were filled up to $32.5, which could put “a lot of selling pressure” on the SOL price. He also shared a screenshot which showed that 163 liquidations had taken place. At the time of publication, Solana was trading at $32.93, down 2.63% over the past 24 hours.

Solana drew attention in June, when it found itself entangled in what most described as its biggest whale liquidation crisis. A large account holder, or “whale,” had a loan with an outstanding balance of $108 million in USDC and USDT that was secured by SOL, the Solana network’s native token. As the price of SOL plummeted, the loan ran the risk of being liquidated.

Soland, a Solana lending process, would have had almost no SOL if the price of the SOL kept falling and the $21 million in SOL used as collateral for the loan would have been liquidated. The project’s co-founders argued that the $2.6 billion Solana network could crash in a hurry to acquire so much SOL for a discount.

In the end, the whale started shifting its Solend investments into other Solana DeFi subsidiaries like Mango Markets — resolving the most acute crisis without a single cascading liquidation.

Solana Blockchain Resume

solana network After six hours of effort, it was started again. The Solana network stopped processing transactions and went offline on Friday due to a faulty node.

This marks the blockchain’s fourth significant outage since January, when it experienced a succession of partial outages for most of that month. This most recent network shutdown comes a year after a nearly 18-hour outage last September.

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