Traders Suffer More Than $1 Billion in Losses Within 24 Hours as Long Positions Take a Hit

Bitcoin’s sharp decline from $112,000 to below $106,000 on Monday triggered one of the largest liquidation waves in weeks, erasing over $1.27 billion in leveraged futures positions across crypto markets.

Data from CoinGlass indicates that long traders accounted for nearly 90% of the total liquidations, with more than $1.14 billion in bullish bets wiped out as prices dropped from weekend highs. Shorts represented only $128 million of the total.

Liquidations occur when traders using borrowed funds are compelled to close their positions because their margin falls below required levels. On crypto futures exchanges, this process is automatic; when prices move sharply against a leveraged trade, the platform sells the position into the market to cover losses.

Large clusters of long liquidations can signal capitulation and potential short-term bottoms, while significant short wipeouts may precede local tops as momentum shifts. Traders can monitor areas where liquidation levels are concentrated to help identify zones of forced activity that may act as near-term support or resistance.

The largest single liquidation happened on HTX, where a $33.95 million BTC-USDT long position was closed.

Hyperliquid led all platforms in activity, recording $374 million in forced closures — with 98% being longs — followed by Bybit at $315 million and Binance at $250 million.

This wave followed Bitcoin’s recent rejection above $113,000 and amid thin order books across major perpetual venues, amplifying price swings during low-liquidity hours.

Such instances typically signify short-term “clearing moments” in heated markets, where leverage resets and spot buyers gradually return.

However, with open interest remaining near $30 billion and funding rates easing only slightly, traders seem cautious of further volatility ahead of the Federal Reserve’s rate decision later this week.

Ethereum and Solana experienced similar pressure, with combined liquidations exceeding $300 million, while most altcoins trended lower due to diminished speculative interest.