U.S. Retail Investors Hit by ‘Black Tuesday’ as Stocks Plunge and $1.3B in Crypto Liquidations Wipe Out Traders

Key Takeaways:All three major U.S. stock indices fell sharply on Tuesday, led by the Nasdaq’s 2% plunge.Goldman Sachs’ retail-heavy index dropped 3.6%, marking its worst one-day fall since April.The crypto market saw over $1.3 billion in liquidations, with Bitcoin falling below $100,000 and Ethereum plunging more than 10%.Palantir’s weak earnings and Michael Burry’s bearish positioning added to investor panic.Stocks Sink as Retail Sentiment Turns FearfulAccording to BlockBeats, U.S. retail investors suffered a “Black Tuesday”, with broad sell-offs across equities and cryptocurrencies.The Nasdaq Composite tumbled over 2%, while Goldman Sachs’ retail-tracking index sank 3.6%, the steepest one-day decline since April.Data from JPMorgan revealed that retail investors still bought a net $560 million in stocks and ETFs, despite mounting losses.Analysts attribute the sharp drop to a combination of Palantir’s disappointing earnings, short-selling pressure, and rising volatility in digital assets.Palantir and Burry Fuel Market PanicShares of Palantir Technologies (PLTR) fell nearly 8%, after its quarterly report raised concerns over slowing growth and inflated valuations tied to AI spending.Adding to the bearish tone, legendary investor Michael Burry reportedly established new short positions targeting U.S. equities, intensifying fear-driven sell-offs across retail-dominated sectors.Crypto Markets Hit Hard: $1.3B Wiped OutThe turmoil spilled into crypto markets, where Bitcoin fell below $100,000, and Ethereum (ETH) dropped more than 10% in a single day.Data shows that 342,000 traders were liquidated within 24 hours, with total forced closures exceeding $1.3 billion across futures exchanges.The liquidation wave followed a steep decline in risk sentiment and thin liquidity conditions, leading to cascading margin calls and intensified price swings across major digital assets.Market OutlookAnalysts warn that both equities and crypto may remain volatile in the short term as investors reassess valuations ahead of key U.S. economic data releases and Federal Reserve statements.Still, some view this week’s pullback as a potential washout phase, allowing leverage to reset before markets stabilize later in November.