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Bitcoin’s sharp drop from $112,000 to below $106,000 on Monday triggered one of the biggest liquidation waves in weeks, wiping out more than $1.27 billion in leveraged futures positions in crypto markets.
Data from CoinGlass shows that long traders accounted for nearly 90% of total liquidations, with more than $1.14 billion in bullish bets removed as prices fell from weekend highs. Shorts made up only $128 million of the total.
Liquidations occur when traders using borrowed funds are forced to close their positions because their margin is below the required levels. On crypto futures exchanges, this process is automatic, as when prices move sharply against a leveraged trade, the platform sells the position in the open market to cover losses.
Large clusters of long liquidations can signal capitulation and potential short-term bottoms, while heavy short wipeouts can precede local tops as momentum flips. Traders can also track where liquidation levels are concentrated, helping to identify areas of forced activity that can act as short-term support or resistance.
The single largest liquidation occurred on HTX, where a $33.95 million BTC-USDT long was closed.
Hyperliquid led all platforms in overall activity, registering $374 million in forced closures – with 98% of those being long – 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 in major perpetual seats, amplifying price swings as cascading liquidations arrive during low liquidity hours.
Such events typically mark short-term “moments of clarification” in overheated markets, where leverage resets and spot buyers gradually return.
However, with open interest remaining close to $30 billion and funding rates easing only slightly, traders appeared wary of further volatility ahead of the Federal Reserve’s rate decision later this week.
Ethereum and Solana have seen similar pressure, with combined liquidations exceeding $300 million, while most altcoins have charted lower amid fading speculative appetite.
