Crypto Liquidations Hit $186 Million in One Hour, Led by Long Positions

Crypto derivatives traders had $186 million in positions liquidated in the hour ending at 8:40 a.m. ET (13:40 UTC) Tuesday, with long positions accounting for nearly all the forced closures.

Long liquidations totaled $177 million, about 95% of the total, while short liquidations reached $8.52 million. The long total was more than 20 times the short total. Shorts represented less than 5% of the reported figure.

Long positions are trades designed to gain when prices rise, while shorts are designed to gain when prices fall. Liquidation closes a leveraged trade when its margin can no longer support it. Tuesday's imbalance shows that traders positioned for higher prices bore most of the forced closures.