LSK Token Explodes 500% Then Collapses in Hours

Lisk's LSK token touched $2 on Sunday, representing a rise of more than 900% from its lowest level in August. During the session alone, it surged over 500% before giving back most of those gains within hours, and is now trading at about $0.80.

The round-trip move made LSK the biggest single liquidation event across the crypto market in a 24-hour period. Traders on both sides of the bet were forced to close their positions.

Short Sellers Fueled the LSK Rally

Data from Coinglass showed $41.13 million in LSK liquidations over the day. Short positions accounted for $33.68 million of that figure, compared with $7.44 million in long positions.

That four-to-one ratio suggests the move was driven by forced buying rather than new demand. Traders who had bet on a drop were compelled to buy back the token as it climbed. Each such repurchase pushed the price higher.

Open interest, which measures the total value of outstanding futures contracts, stood at roughly $42 million against $501 million in daily futures volume. Spot order books were much shallower. LSK's latest price and volume show it holding near $0.81, still up more than 300% on the day.

BeInCrypto had noted the conditions in July, when Binance placed LSK under its Monitoring Tag, a label warning of delisting risk for unusually volatile assets.

The Burn That Traders Bet On Has Not Been Voted On

Much of the positioning dates back to August 25, when Lisk announced it would shut down its blockchain on October 31 and restructure into a stablecoin payments service for corporate finance teams.

That plan includes a proposal to destroy 100 million LSK tokens held in the treasury, reducing the maximum supply by a quarter. Token holders have not yet cast their votes on the measure.

LSK continues to exist as a loyalty token on Ethereum and Base. Anyone still holding tokens on the old chain must bridge them out before the deadline.

Important: users holding funds on Lisk Chain must bridge to Ethereum before its closure on October 31st.

The withdrawal takes ∼8 days.

Unlocking and unstaking adds another 3-day waiting period.

Lisk stakers can now unlock their staked LSK, with no penalty (link in bio). pic.twitter.com/QKX1fFZWf0

— Lisk (@Lisk) September 10, 2026

The token remains more than 97% below its all-time high from 2018, and whether Sunday's rally will hold up through the vote is the question the next three weeks will answer.