Capital gains on FTX liquidations

Hi,

I am hoping you can give some clarity on a question that I have.

The question is about the tax implications on a liquidation event on FTX futures.

The collateral used for futures trading can be a number of crypto assets, not just USD. So if an account has say 100 SOL as collateral and has a futures contract open which then liquidates the account, the SOL is sold to cover the loss (sorry for the over simplification). If that SOL has gone up in value do you pay capital gains even though you lose all to the liquidation?

Sorry for the shocking example/explanation, any help would be appreciated.