- Liquidated long positions: $873,05 million (approximately 89,12%)
- Liquidated short positions: $106,67 million (approximately 10,88%)
This disparity in liquidations points to a sharp market reversal that caught leveraged long traders off guard following the public spat between Elon Musk and Donald Trump.
Coin by Coin Analysis: BTC & ETH Dominate
The top assets by liquidation volume are as follows:
| symbool | Liquidated Volume |
|---|---|
| BTC | $344,42 million |
| ETH | $285,06 million |
| SOL | $50,12 million |
| DOGE | $27,04 million |
| XRP | $22,73 million |
Bitcoin (BTC) and Ethereum (ETH) together account for 64% of total liquidations, reflecting the highly leveraged activity surrounding these major coins. Notably, SOL and DOGE have significant liquidation volumes relative to their market cap, indicating overfunded retail enthusiasm.
Analyzing at stock market level
The liquidations were concentrated on a few key platforms:
| Scholarship | Total | Long | Shorts | Long Ratio |
|---|---|---|---|---|
| bybit | $350,95 million | $330,35 million | $20,60 million | 94,13% long |
| Binance | $246,80 million | $205,04 million | $41,77 million | 83,08% long |
| Gate | $115,18 million | $107,19 million | $7,99 million | 93,07% long |
| OK | $95,47 million | $79,25 million | $16,23 million | 83,01% long |
Bybit leads with the highest liquidation volume, with an extreme long bias of 94,13%, highlighting the heavy bullish leverage of its users. This likely led to one of the largest long squeezes on the platform.
Interpretation: A classic lung squeeze
Today’s liquidation data paints a picture of excessive long positions on retail-focused exchanges. The disproportionate hit to longs, nearly 9x the number of short liquidations, points to a classic long squeeze likely caused by a rapid price decline in BTC or ETH. This could have been exacerbated by:
- Aggressive leverage in altcoin trades (SOL, DOGE)
- Activation of stop-loss orders during the correction caused by personalities
- Unwinding bullish derivatives structures ahead of the weekend
Considering the scale of liquidations:
- Short-term volatility is likely to remain high
- Expect reduced open positions and cooling financing rates
- Some pullback rallies could be weaker as detached longs reconsider new risks
If BTC or ETH stabilizes, a short-term recovery is possible, but a long-term rise will require clear support and renewed confidence after the hit.
Frequently Asked Questions
What are liquidations in the crypto market?
Liquidations occur when a trader must close their position because losses exceed the required margin level. This is often driven by price movements that are rapid and unpredictable.
Why are long positions hit so hard in this liquidation?
The major blow to long positions can be attributed to a sudden price drop that dismantled the leverage of these positions, forcing them to be liquidated to avoid further losses.
What does a long squeeze mean?
A long squeeze is a situation where the price of an asset falls rapidly, causing many long positions to be liquidated. This can lead to a further decline in price as the liquidations create additional selling pressure.
