Crypto Liquidations Hit $991 Million as Short Squeeze Drives Market Volatility

Nearly $991.6 million in leveraged crypto positions were forcibly closed over the past 24 hours, underscoring a renewed burst of volatility and a sharp squeeze against bearish bets across major derivatives venues.

Data aggregated by CoinGlass shows that short liquidations accounted for $830.91 million—about 83.78% of the total—while long liquidations totaled $160.69 million, or 16.22%. Such an imbalance typically reflects a rapid upward move or abrupt rebound that catches traders positioned for downside off guard, triggering cascading margin calls as prices rise.

In the most recent four-hour window, Binance led all venues with roughly $231.9 million in liquidations, representing 31.5% of the total tracked. Short positions made up $195.2 million, or 84.17%, suggesting a concentrated unwind of bearish leverage on the largest exchange by derivatives activity. Bybit followed with $135.4 million (18.39%) in liquidations, with shorts comprising $119.8 million—about 88.53%—highlighting how heavily positioned the market had become to the downside before the move reversed.

Notably, HTX showed a different pattern, where long liquidations represented 85.82% of its total liquidations during the observed period, indicating pockets of the market experienced downside pressure even as broader liquidation flows skewed heavily toward shorts.

By asset, Ethereum (ETH) saw the largest wipeout. ETH-linked positions recorded about $104.85 million in liquidations over 24 hours, with as much as $11.76 million occurring in a four-hour stretch. Bitcoin (BTC) followed closely, with approximately $100.43 million liquidated over the same daily period and a four-hour peak of around $14.10 million. Solana (SOL) registered about $11.50 million in 24-hour liquidations, while select altcoins also posted notable figures, including XRP with roughly $6.10 million and LAB with about $6.69 million.

Dogecoin (DOGE) saw comparatively smaller liquidation volumes, aided by a modest price increase of about 0.73% during the reporting window, according to the data cited.

In crypto derivatives markets, a 'liquidation' occurs when a leveraged trader can no longer meet margin requirements and an exchange automatically closes the position to prevent further losses. The scale and composition of the latest liquidations point to elevated leverage and fragile positioning, conditions that can amplify price swings as forced closures ripple through order books.

While liquidation bursts often accompany trend shifts or short-term reversals, they also signal that liquidity is being stress-tested. Market participants will be watching whether the squeeze-driven move stabilizes or gives way to further volatility as traders reposition and funding dynamics reset.