Middle East geopolitical tensions have led to an unprecedented wave of crypto liquidations, with a single one-hour candle showing $226 million in liquidations, marking the largest since the price drop to $73,000. Traders are adopting contrarian strategies amid the geopolitical downturn, with some purchasing September/December volatility calendar spreads at a 40 volatility rate, anticipating a price rebound to $107,000. The volatility has caused significant shifts in options positions, disrupting Friday's expiry setups and forcing traders to close spread strategies and reassess risk management.