Solana Million-dollar Liquidation Causes Threat to Price
A Solana long contract worth $2.5 million is on the verge of liquidation and became the subject of attention after a six-hour network outage on Oct. 1.
At some point, the Solana network stopped processing transactions leaving users stranded. Reports came that Solana has been down, and validators are coordinating an attempt to restart.
Nearly 2.5m long contracts in the Mango market are in the liquidation range. However, it is impossible for the holder to add a margin or liquidate.
The liquidation price estimated for the contract was $33.04. However, with the price of SOL underneath this point, the position was close to being liquidated.
Kaash Capital, a crypto user, posted the screenshot of the long position. He as well shared a screenshot showing 163 liquidations had occurred.
In June, Solana drew great attention when it was entangled in what was described by most as its biggest whale liquidation crisis.
A whale or large account holder had a loan with an outstanding balance of $108 million in USDC and USDT secured by SOL, the Solana network's native token. As SOLs price plummeted, the loan was at the risk of being liquidated.
Solend, SOL lending procedure, would have nearly had no SOL if SOLs price had kept falling and also if the $21 million in SOL used as collateral for the loan was liquidated.
The project co-founder argued that the rush to acquire so much SOL at a discount may have caused the Solana network to crash.
In the end, the whale started moving its Solend investments into other Solana DeFi subsidiaries like Mango Markets — thereby resolving the most severe crisis without a single cascading liquidation.
After a six-hour outage, the Solana network was successfully restarted. Dapps and network operators will keep coming back online over the next several hours.
On Friday, the Solana network stopped processing transactions. This was due to a misconfigured node.
This marks blockchain's fourth significant outage since January.