Bitcoin’s sharp drop from $112,000 to below $106,000 on Monday triggered one of the largest liquidation waves in weeks, wiping out more than $1.27 billion in leveraged futures positions across crypto markets.
Data from CoinGlass shows long traders accounted for nearly 90% of the total liquidations, with more than $1.14 billion in bullish bets erased as prices fell from weekend highs. Shorts made up just $128 million of the total.
Liquidations occur when traders using borrowed funds are forced to close their positions because their margin falls below required levels. On crypto futures exchanges, this process is automatic, as when prices move sharply against a leveraged trade, the platform sells the position into the open market to cover losses.
Large clusters of long liquidations can signal capitulation and potential short-term bottoms, while heavy short wipeouts may precede local tops as momentum flips. Traders can also keep track of where liquidation levels are concentrated, helping identify zones of forced activity that can act as near-term support or resistance.
The single biggest liquidation occurred on HTX, where a $33.95 million BTC-USDT long was closed out.
Hyperliquid led all platforms in overall activity, registering $374 million in forced closures — with 98% of those being longs — followed by Bybit at $315 million and Binance at $250 million.
The flush came after Bitcoin’s latest rejection above $113,000 and amid thin order books across major perpetual venues, amplifying price swings as cascading liquidations hit during low-liquidity hours.
Such events typically mark short-term “clearing moments” in overheated markets, where leverage resets and spot buyers gradually step back in.
Still, with open interest remaining near $30 billion and funding rates easing only slightly, traders appear wary of further volatility ahead of the Federal Reserve’s rate decision later this week.
Ethereum and Solana saw similar pressure, with combined liquidations topping $300 million, while most altcoins tracked lower amid fading speculative appetite.
