Crypto derivatives markets recorded about $521m in liquidations over the past 24 hours as a burst of volatility triggered forced closures of leveraged positions across major exchanges.
Bitcoin accounted for more than $200m of the liquidations, with Ethereum and other large-cap altcoins making up the remainder as selling pressure spread across derivatives markets.
More than 120,000 trader accounts were liquidated as automated risk systems closed overleveraged long positions when prices reversed.
The liquidation wave followed a period of rising open interest in bitcoin and ether futures, during which improving sentiment pushed funding rates higher as traders paid premiums to maintain long exposure.
When prices turned lower, many leveraged positions lacked sufficient margin buffers, forcing exchanges’ risk engines to liquidate positions into a falling market and accelerating the sell-off.
Major derivatives venues reported most of the losses but no significant system outages, indicating that exchange risk-management systems functioned as intended during the volatility.
Analysts say the liquidation event may reset speculative leverage in the market, though repeated flushes in recent weeks suggest traders remain quick to rebuild aggressive positions when prices rebound.
At the time of reporting, Bitcoin price was $72,580.12.