Ether Liquidation Triggers $2.5 Billion in Crypto Losses in 24 Hours
A massive Ether liquidation on Hyperliquid sparked a leverage-driven sell-off, pushing total crypto liquidations past $2.5 billion within 24 hours.
One trader lost over $220 million on an ETH position as a wave of forced liquidations swept through the market. The largest single liquidation occurred on decentralized derivatives exchange Hyperliquid, where a $222.65 million ETH-USD position was wiped out, according to CoinGlass data.
Ether led the sell-off, dropping as much as 17% in the past day alongside Bitcoin and other major tokens amid thin liquidity. A total of 434,945 traders were liquidated, with long positions accounting for $2.42 billion of the $2.58 billion total, while shorts made up just $163 million.
Hyperliquid bore the brunt, recording $1.09 billion in liquidations—mostly from long positions—representing over 40% of total exchange-wide losses. Bybit and Binance followed with $574.8 million and $258 million, respectively. Bitcoin and Solana saw roughly $788 million and $200 million liquidated.
Liquidations occur when leveraged positions are forcibly closed after prices breach margin thresholds, often triggering cascade effects in volatile markets. Traders track these metrics to gauge market sentiment, detect overcrowded positions, and identify potential reversals. Paired with open interest and funding rates, liquidation trends can highlight strategic entry or exit points in markets prone to sudden flushes or rallies.
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