Cryptocurrency markets experienced significant volatility in the past 24 hours, with total liquidations surpassing $1.09 billion, according to data from analytics platform CoinGlass. A total of 181,077 traders lost their positions amid sharp price swings, marking one of the most substantial liquidations seen in recent months.
Long traders bear the brunt
The majority of losses affected long traders, who accounted for $930.54 million of the liquidations, making up around 85% of the total. By comparison, short traders faced losses amounting to $161.85 million over the same period. The selloff was primarily triggered by leveraged buyers, rather than a widespread short squeeze.
A single ETH-related order worth $19.98 million on decentralized perpetuals exchange Hyperliquid represented the largest individual liquidation. The current wipeout ranks as the most severe since August 20, when daily liquidations approached $3 billion. For context, the spike on September 22 saw liquidations peak at about $1.1 billion.
Price action and market reaction
Bitcoin was the focus of much of the action, having fallen from roughly $86,000 to around $82,000 during the period of heightened volatility. However, recent hours painted a different picture, as shorts started taking heavier losses. Over the last 12 hours, short traders surrendered $46.29 million, while long traders lost a comparatively lower $11.08 million.
In just the last four hours, $13.39 million of $16.64 million in total liquidations came from short positions. Hyperliquid’s liquidations during this time frame consisted almost entirely of shorts, comprising 99.96% of their total. Analysis of real-time statistics shows that many ZEC (Zcash) shorts have been forcefully closed, particularly near the $1,234 level, suggesting a price recovery and “trap” for short sellers.
Mini dictionary: Hyperliquid, a decentralized perpetuals trading protocol, enables high-leverage crypto derivatives trading directly on the blockchain, offering transparency and non-custodial transactions.
| Period | Long Liquidations | Short Liquidations | Total Liquidations |
|---|---|---|---|
| Past 24 hours | $930.54 million | $161.85 million | $1.09 billion |
| Last 12 hours | $11.08 million | $46.29 million | $57.37 million |
| Last 4 hours | $3.25 million | $13.39 million | $16.64 million |
Possible scenarios and outlook
The liquidation sequence began with a sharp “long flush” that mostly affected leveraged buyers. Following this, the market experienced a minor short squeeze, as prices rebounded and short sellers were forced to cover their positions. Despite the intensity, current data does not suggest a full reversal of the overall trend.
Market activity appears to be settling, with just $5.60 million in liquidations recorded in the most recent hour, indicating that volatility is easing. Historically, major liquidation events often precede short-term shifts in market direction.
Currently, forced sellers are no longer driving the price at its lowest points. If the price of Bitcoin fails to stage a recovery, analysts caution that a renewed bearish move could unfold, especially if support in the $80,000 to $82,000 range fails to hold. If the buying pressure increases and short liquidations rise, a sustained recovery toward $86,000 could materialize. Conversely, a decline below key support may trigger another round of long liquidations similar to the large-scale selloff seen in August.
Major liquidations have shaken the crypto market, with daily totals not seen since August. Most positions affected were longs, highlighting increased risk among leveraged buyers.
