Over $584M Liquidated as Longs Flush in BTC/ETH-Led Leverage Reset
More than $584 million of crypto positions were liquidated within 24 hours as a long-heavy market structure collapsed amid thin liquidity and fragile risk appetite. The event wiped out about 181,893 traders, with longs accounting for over 87% of losses — indicating a leverage-driven reset rather than a fundamentals-led sell-off. BTC and ETH led the liquidations (roughly $174.3M and $189M respectively); the largest single trade was an $11.58M BTCUSDT liquidation on Binance. Binance, Bybit and Hyperliquid contributed nearly 75% of total liquidations, and Hyperliquid’s liquidations were 98% long. Major altcoins were hit as well: SOL ~$34.5M, XRP ~$14.5M, DOGE ~$11.8M. Price action resembled a liquidity sweep: a brief push below intraday supports triggered cascading stops and forced deleveraging before prices stabilised, and spot markets avoided a decisive trend break. Earlier, smaller reports showed $128M wiped with asset-specific patterns (BTC long-heavy; ETH short-heavy; ZEC short-dominated), underlining that liquidations were uneven across tokens. For traders, immediate implications are elevated volatility and a downside skew while leverage remains high and liquidity thin. Risk management steps — lowering position size, tighter stops, monitoring funding rates and liquidation heatmaps (Coinglass, Bybit) — are essential. If leverage is sufficiently flushed and spot-led buying returns, the market may stabilise; repeated long-heavy flushes, however, weaken market structure and increase the probability of further downside in short windows.
Bearish
The liquidation event was dominated by long positions (over 87% of losses) and led to large BTC and ETH sell-side pressure from forced deleveraging. Short-term, forced liquidations and cascading stops increase volatility and create a downside skew as weak longs are removed and liquidity is thin — conditions that typically exert bearish pressure on BTC and ETH price action in intraday to multi-day windows. Although spot markets stabilised after the liquidity sweep and some earlier data showed mixed, asset-specific patterns, the sheer scale of leverage flushed (and concentration on major venues) weakens market structure. Longer term, if leverage is meaningfully reduced and spot-led demand returns, prices can stabilise or recover; until then, the balance of risk remains to the downside for BTC and ETH due to elevated leverage, holiday-like liquidity, and potential for follow-up long-heavy flushes.