Trump’s Tariff Threats Spark $300M Crypto Liquidations, Forcing Late Bulls to Exit

Renewed trade war fears sent shockwaves through the crypto market on Friday, causing a swift sell-off that wiped out more than $300 million in leveraged positions across major exchanges. Bitcoin (BTC) dropped 3% from near-record highs, catching many long traders off guard.

According to CoinGlass data, liquidations overwhelmingly targeted long positions, with Bitcoin longs alone accounting for $107 million in forced closures. Ethereum (ETH) followed with liquidations totaling nearly $87 million. Other altcoins including Solana (SOL), Dogecoin (DOGE), and SUI faced liquidations ranging between $10 million and $18 million each.

Prominent crypto trader Skew described the event on X as “a significant flush of long leverage and spot de-risking—all triggered by headline risk once again.”

The catalyst was President Trump’s announcement of a 50% tariff on European Union imports starting June 1, coupled with a 25% tariff on iPhones manufactured outside the U.S. These moves reignited concerns over a brewing trade war, prompting traders to reduce risk exposure across crypto assets.

As a result, major coins including Bitcoin, Ethereum, XRP, and Cardano fell by 3% to 4%, while smaller-cap tokens like Uniswap (UNI) and SUI took heavier hits, falling between 5% and 7% in the last 24 hours.

Notably, trader James Wynn—who recently made headlines with a massive $1.1 billion BTC long position at 40x leverage on Hyperliquid—has seen his position slip into the red. Wynn is currently carrying $7.5 million in unrealized losses, and faces liquidation risk if Bitcoin falls to $102,000, as revealed by screenshots shared publicly.

This liquidation surge coincides with an unusual uptick in BTC short positions despite the currency’s near all-time highs, signaling heightened caution among market participants.