XRP suffered a brutal 37% flash crash on Saturday, August 22, dropping roughly $0.60 as approximately $500 million in leveraged long positions were liquidated across the crypto market within minutes.
The sudden downturn followed days of heavy gains. XRP had previously rallied more than 60% over the course of a week, reaching above $1.69 on the back of institutional inflows, regulatory optimism, and a broad market short squeeze. Analysts noted that the rapid prior growth left traders dangerously overexposed and saturated with high-leverage long positions held by retail investors.
During the flash crash, other major digital assets also declined steeply within the same window. Bitcoin fell 2.5%, Ethereum dropped 5%, and Solana slid 11.5%. According to Coinglass data, total liquidations across the broader crypto market reached $1.35 billion over a 24-hour period, with the majority of the activity concentrated on Binance.
Market observers offered various explanations for the sudden slide. With no clear macroeconomic catalyst such as a Federal Reserve announcement or a major security hack, analysts attributed the event primarily to structural factors, including high leverage, thin weekend liquidity, and overly bullish positioning. While some market participants characterized the movement as market manipulation, others viewed it as a natural deleveraging phase.
Following the sharp correction, XRP recovered a portion of its lost value, climbing back to approximately $1.50 in the hours after the incident.
