One trader lost more than $220 million on an ether position as a fresh wave of forced liquidations swept through crypto markets, pushing total losses over the past 24 hours to nearly $2.6 billion.
The largest single liquidation occurred on decentralized derivatives exchange Hyperliquid, where an ETH-USD position worth $222.65 million was wiped out, according to CoinGlass data.
The event came as ether slid as much as 17% in the past 24 hours, sharply alongside bitcoin and other major tokens during a period of thin liquidity.
In total, 434,945 traders were liquidated over the past day, with long positions accounting for the vast majority of losses. Roughly $2.42 billion of the $2.58 billion total came from bullish bets, while shorts made up just $163 million.
Hyperliquid saw the heaviest damage, recording $1.09 billion in liquidations — nearly all of it from long positions — accounting for more than 40% of total losses across exchanges. Bybit followed with $574.8 million in liquidations, while Binance recorded about $258 million.
Ether bore the brunt of the sell-off, with more than $1.15 billion in ETH positions liquidated in the past 24 hours. Bitcoin followed with roughly $788 million, while Solana saw close to $200 million wiped out, according to liquidation heatmap data.
Liquidations occur when leveraged positions are forcibly closed due to a price move beyond a trader’s margin threshold. This typically results in major losses and can trigger cascade effects during volatile moves.
Traders use liquidation data to gauge market sentiment and positioning. Large long liquidations often signal panic bottoms, while short liquidations may precede a squeeze.
Spikes in liquidations also help identify overcrowded trades and potential reversals. When paired with open interest and funding rate data, liquidation metrics can offer strategic entry or exit points, especially in overleveraged markets prone to sudden flushes or rallies.
Liquidation-driven moves have become more common during periods of low liquidity, where relatively small price declines can cascade through derivatives markets.