The cryptocurrency market faced a significant downturn in early September 2025, resulting in over $1.65 billion in liquidations, marking the largest event of its kind since December 2024. Ethereum was the most affected, plummeting 12% and causing $309 million in liquidations, while Bitcoin saw a 5% decline. The DeFi sector and leveraged futures were particularly impacted, with long positions making up 88% of the liquidations. This selloff wiped out nearly $300 billion in market value, fueled by high leverage and market volatility.