XRP Liquidation Spike Wipes Out Long Traders in Sudden Reversal

A sudden XRP price reversal on Wednesday triggered one of the most dramatic liquidation events in recent crypto market history. Long traders faced a staggering 721,735% spike in liquidations within just one hour — wiping out nearly $474,000 in bullish bets, according to CoinGlass data. In sharp contrast, short liquidations totaled only $65, highlighting an extreme market imbalance.

XRP had shown quiet upward momentum early in the session, climbing from around $2.27 to a local high of $2.36. However, a swift dip below $2.29 triggered a wave of margin calls that cascaded through the market. Though the price drop wasn’t severe in percentage terms, the speed and timing were enough to obliterate overleveraged positions.

The liquidation event was part of a broader market trend, with over $103 million in total liquidations across crypto assets in a 12-hour span. Long positions made up more than two-thirds of the total losses. Bitcoin saw $11.75 million in long liquidations, while Ethereum recorded $3.55 million — but XRP stood out due to the intensity and focus of the liquidations in such a short time frame.

Traders had clearly overcommitted on bullish XRP bets, leaving the market vulnerable to even minor corrections. Leverage proved to be the downfall, as the price dip didn’t need to be deep — only fast — to trigger mass liquidations. The incident serves as a stark reminder of the risks tied to high-leverage trading in volatile markets.

As XRP continues to be a high-interest asset, especially with rising ETF speculation, traders should remain cautious. Momentum can flip quickly — and as this case proves, even small moves can lead to big consequences when the market is overexposed.