#Cryptotrader with the handle DeFiSquared recently capitalized on an #arbitrage opportunity that emerged on #Bybit , earning a seven-figure sum from a series of crypto trades on the exchange.

"For those interested, the arbitrage opportunity occurred today between the XRPUSD and XRPUSDT contracts on Bybit. A discount of 45% emerged and was closed within 10-20 minutes."

This likely stemmed from significant liquidations among market-making algorithm traders, depleting the available spot XRP required for margin trading of the coin's contracts.

DeFiSquared shared on the restricted Twitter platform that the arbitrage opportunity arose after an unusual decoupling of derivatives between the coin's margin and Tether USD (USDT) occurred on Bybit. The mismatch in #XRP pairs' prices on Bybit resulted in the 45% discount, which enabled them to earn between $1 million and $9.9 million.

Crypto arbitrage is a trading strategy that exploits price differences across cryptocurrencies. In such cases, a trader buys and sells the same asset on different markets, profiting from the price discrepancy.

Data from CoinGlass reveals that XRP traders on centralized exchanges experienced over $27 million in liquidations within the past 24 hours. Meanwhile, the wider #cryptocurrency market saw liquidations exceeding $1 billion.