Crypto Liquidations Hit $374M as Bitcoin Swings Trigger Long Wipeout and Short Squeeze

by

Crypto volatility wiped out $374M in leveraged positions, with long traders taking the largest hit before a sharp Bitcoin short squeeze.

Sharp price swings across crypto derivatives markets triggered a wave of forced liquidations during the past 24 hours. Data from the derivatives tracker Coinglass shows that 115,781 traders lost positions as volatility ravaged major assets. As per market insights, total exchange liquidations reached a jaw-dropping $374.23 million. Bitcoin and Ether, ever the overachievers, account for most of the carnage.

Bitcoin and Ethereum Dominate Crypto Liquidations as Leverage Unwinds

Oh, the irony. There was a glaring imbalance between long and short positions. Long traders, bless their bullish hearts, absorbed the largest losses-around $240 million in liquidations. In comparison, the short traders, though still hit hard, only saw around $134 million wiped out. The market first took a dive, booting out the hopeful longs, only to reverse and send the shorts into a panic. Such drama!

In the past 24 hours, 115,781 traders were liquidated. The total? A staggering $374.23 million.

The largest single liquidation order happened on Hyperliquid – a modest $4.45M.

– CW (@CW8900)

Liquidations spread across several major derivatives exchanges like wildfire. Binance took the lion’s share with $92.75 million, because who doesn’t love the thrill of seeing the king in action? Hyperliquid followed closely with $70.90 million, while Bybit chimed in with $70.08 million. Meanwhile, OKX and Bitget recorded $36.45 million and $35.17 million, respectively. A veritable smorgasbord of market bloodletting.

Binance, once again, dominated the liquidation party, representing nearly a quarter of the total volume. Its dominant position in global derivatives trading places it at the center of every liquidation event, like the center stage of a chaotic circus.

The large-cap crypto assets were, unsurprisingly, the stars of the liquidation show:

  • Bitcoin led with a glorious $146.7 million in liquidations, because it never does anything by half.
  • Ethereum followed with a still-impressive $78.7 million.
  • Solana came in a distant third with $20.9 million-bless its heart.

Combined, Bitcoin and Ethereum absorbed roughly 60% of the total market liquidations. Meanwhile, the smaller altcoins, like Dogecoin, played their parts in smaller clusters, but let’s face it, they were just here for the snacks.

Liquidation Clusters Build as BTC Moves Between $67K and $71K

Intraday price swings set the stage for the liquidation drama. Bitcoin, the diva that it is, danced between $67,000 and $69,000 for most of the day. During each dip, clusters of forced long liquidations emerged, with bursts ranging from $20 million to $25 million. Talk about drama.

Image Source: Coinglass

Then came the plot twist: Bitcoin surged toward $71,000, and the short squeeze began. Prices soared, and short liquidations spiked, reaching $70-$80 million in a single explosive burst as bearish traders scrambled to exit. It’s almost like the market was laughing in their faces.

This is, of course, a common script in the world of derivatives. Pullbacks obliterate leveraged longs, and breakouts, well, they turn shorts into frightened rabbits. It’s like a market version of The Hunger Games-but with a lot more digital tokens.

Broader derivatives data suggests that the market is slowly unraveling its leverage. According to CryptoQuant analytics, Bitcoin futures open interest has plummeted from its late-2025 peak of $47 billion. Now, it hovers closer to $22 billion to $23 billion across exchanges. A quiet retreat for the faint-hearted.

Read More

2026-03-04 18:39