Crypto markets experienced a significant wave of liquidations as prices moved rapidly against traders' positions. Data from CoinGlass indicates that approximately $758 million in positions were wiped out within a four-hour period.
Long positions bore the brunt of these liquidations, accounting for around $730 million of the total. Traders betting on higher prices saw their positions closed. Short positions, conversely, experienced liquidations totaling about $27.6 million during the same timeframe.
Over the past 24 hours, the total value of liquidations increased further. CoinGlass data reveals that 241,172 traders worldwide were liquidated, resulting in aggregate losses of approximately $864 million.
CoinGlass data shows that in the past 4 hours, total liquidations across the network reached approximately $758 million, with long positions liquidated at $730 million and short positions at $27.63 million. In the last 24 hours, 241,172 users worldwide were liquidated, with total…
These figures suggest that the market was heavily positioned on one side prior to the price movements.
Long Traders Caught Off Guard
The majority of the financial damage occurred in long trades, which are designed to profit from rising prices. When prices declined instead, exchanges automatically closed these positions to mitigate further losses for traders.
Bitcoin and Ether were among the most significantly affected cryptocurrencies in terms of liquidations. Over the preceding day, Bitcoin liquidations amounted to tens of millions of dollars, with Ether following closely.
Smaller assets also experienced substantial liquidations as their prices fell. Solana, XRP, Dogecoin, and various other altcoins saw consistent liquidation activity.
The largest single liquidation order recorded was on Hyperliquid. A Bitcoin USDT position valued at approximately $25.8 million was forcibly closed, according to CoinGlass.
For individuals new to trading, liquidation signifies an exchange's intervention. The exchange closes a trade when losses become too substantial and the trader's margin is depleted.
Exchanges See Heavy Forced Closures
Hyperliquid registered the highest proportion of liquidations within the observed four-hour window. More than $51 million in positions were closed on this platform, with long positions constituting almost the entirety of this figure.
Other major exchanges, including Bybit, Binance, Gate, and Bitget, also reported substantial liquidation volumes. Across most of these platforms, over 90 percent of the liquidated positions were identified as long trades.
This consistent pattern indicates a scenario where traders were heavily concentrated on the same speculative bet. When prices reversed, the resulting exits were rapid and financially detrimental for many.
CoinGlass liquidation heatmaps illustrated intense trading activity across key cryptocurrency pairs, particularly Bitcoin and Ether, during the period of price decline.
Market Implications of Liquidations
Significant spikes in liquidations often contribute to increased short-term market volatility. The forced selling can exert downward pressure on prices before market conditions stabilize.
Conversely, extensive liquidations can serve to reset leverage within the market. Once excessive risk is eliminated through these forced closures, markets may find a more stable equilibrium.
The current data from CoinGlass serves as a reminder to traders of a fundamental principle in cryptocurrency trading: the use of leverage carries inherent risks and can amplify both gains and losses.