Crypto Liquidations Surge Past $625M as Volatility Crushes Leveraged Traders

Crypto markets delivered a harsh reminder of the risks of leverage over the past 24 hours, with more than $625 million in liquidations triggered by sharp and sudden price swings. According to CoinGlass data, nearly 150,000 traders were forced out of their positions as both bullish and bearish bets were punished in an unusually balanced liquidation event.

Roughly $306 million in long positions were liquidated alongside about $319 million in short positions, highlighting how quickly market momentum reversed during the session. This near-even split underscores the extreme volatility that defined the trading day, leaving little room for error for leveraged crypto traders.

The largest single liquidation occurred on Hyperliquid, where an ETH-USD position valued at $40.22 million was forcibly closed. Hyperliquid also led all platforms in total liquidations, accounting for approximately $220.8 million. Notably, more than 72% of these liquidations were tied to short positions, suggesting that many traders were positioned for further downside just as prices rebounded sharply.

Major centralized exchanges were also heavily impacted. Binance recorded around $120.8 million in liquidations, with losses skewed toward long positions, while Bybit saw close to $95 million wiped out, again with longs slightly outweighing shorts. These figures reflect how leverage amplified losses across the crypto derivatives market.

The liquidation cascade unfolded amid dramatic intraday price action in bitcoin, which briefly dropped below $88,000 before rebounding toward the $90,000 level. The move came as global markets reacted to heightened macro uncertainty, including U.S. trade policy concerns, bond market volatility, and shifting expectations surrounding President Donald Trump’s appearance at the World Economic Forum in Davos.

For leveraged traders, the environment proved especially unforgiving. Initial downside momentum triggered long liquidations that accelerated the drop, while the subsequent rebound trapped short sellers and sparked a second wave of forced closures. This classic whipsaw scenario illustrates how competing narratives and elevated leverage can combine to inflict losses on both sides of the market.

As crypto traders look ahead, market participants will be watching closely to see whether volatility subsides or continues. Until clearer direction emerges, the latest liquidation surge suggests that caution and risk management may be more prudent than aggressive leverage in today’s crypto market.