Bitcoin (BTC) price tumbles below $48,000 on Lighter as $67 million sell order triggers flash crash

CoinDesk

by Krisztian Sandor

February 26, 2026

AI-Generated Deep Dive Summary

Bitcoin experienced a dramatic flash crash on February 26, dropping nearly 30% to below $48,000 on decentralized perpetuals exchange Lighter, despite strong gains elsewhere in the crypto market. The sharp decline occurred after a single large sell order of approximately 1,000 Bitcoin—valued at around $67 million at the time—wiped out available bids on the platform, causing prices to spiral downward briefly before recovering. This incident highlights the risks of trading on less-established exchanges with limited liquidity. The flash crash was isolated to Lighter, a relatively new DEX (decentralized exchange) that lacks the deep liquidity found on major centralized exchanges like Hyperliquid or Binance. According to Web3 developer 0xTimberJ, the platform’s thin order books amplified the impact of the sell order, leading to exaggerated price swings. Such flash crashes are common in environments with low trading volume, where even modest market movements can trigger dramatic market corrections. The broader crypto market showed resilience during the same period, with Bitcoin climbing from below $64,000 to above $69,000—a significant intraday rally. This divergence underscores the importance of understanding exchange-specific risks when trading derivatives like perpetual futures contracts. Lighter has ambitious goals but faces challenges in maintaining sustained growth; its monthly volume dropped sharply after a token airdrop late last year, with February’s figures showing just $70 billion in trades compared to November’s peak of over $292 billion. For crypto traders and investors, this incident serves as a reminder of the unique risks associated with decentralized exchanges. While DEXs offer advantages like censorship resistance and leveraged trading opportunities, they often lack the liquidity and stability of their centralized counterparts. As highlighted by the flash crash on Lighter, even small imbalances in market orders can lead to outsized price movements that don’t reflect broader market conditions. This event also raises questions about the role of large sell orders in shaping crypto markets. The $67 million sell order on Lighter appears to have been a catalyst for the flash crash, but its origin and intent remain unclear. Whether it was

Verticals

cryptofinance

Originally published on CoinDesk on 2/26/2026