Recent market price action has triggered a massive liquidation event, with the total value of liquidations now exceeding $500 million across the board. This downturn underscores intense volatility and a rapid repricing of assets, particularly affecting Bitcoin, Ethereum, and XRP. Initially, the market saw approximately $374 million in short liquidations driven by earlier rallies in assets like SUI and PENGU. However, the momentum has shifted significantly, with the latest sell-off marking a clear decoupling from traditional financial markets; while crypto assets decline, major indices like the S&P 500 and Nasdaq have continued to trade higher. [Update 1] Traders and analysts attribute the current drop primarily to a leverage washout and internal market structure dynamics rather than fundamental negative news. This suggests a flush of over-leveraged positions as the primary driver behind the divergence from equities.