Silver sank as much as 17% in the past 24 hours, wiping out a two-day rebound as the metal struggled to find a floor after last week’s historic rout.

The move dragged gold and copper lower as well, extending an unwind that traders say has been magnified by thin liquidity and heavy speculative positioning.

The renewed drop is also showing up on crypto rails. On Hyperliquid, one of the larger liquidation prints tied to tokenized silver was a forced close of roughly $17.75 million in XYZ:SILVER, with about $16.82 million of that coming from long positions, according to trade data shared by market participants.

The lopsided unwind fits the pattern of late, with traders leaning into rebound bets only to get flushed when volatility spikes again.

That spillover is exactly what hedge fund manager Michael Burry flagged earlier this week.

Burry described a “collateral death spiral” dynamic, where leverage builds as metals rise, then falling crypto collateral forces traders to sell tokenized metals to meet margin. He singled out bitcoin losses could force institutions to liquidate profitable metals positions.

In that kind of tape, the liquidation leaderboard can look inverted, with metals products briefly doing more damage than bitcoin itself.

Macro headlines are not helping. Markets are still digesting the policy implications of Kevin Warsh’s nomination as Federal Reserve chair, while President Donald Trump has pushed back on the idea that the Fed could turn more hawkish.

Rate expectations matter for precious metals, but the bigger driver right now is positioning and forced selling, not the clean macro bid that powered last month’s surge.