Yesterday, the market really blew up—liquidations across the entire network exceeded $1.1 billion, the worst time in the past few months. I looked at the on-chain data: within just 24 hours, nearly 250,000 traders were forced to liquidate, and liquidations in long positions alone wiped out more than $1 billion.

What’s most shocking is that someone was liquidated for $200 million on BTC futures on a major exchange. How large that order was is easy to imagine. Although the exchange won’t publicly reveal who placed the trade, liquidations on this scale are still quite rare. It seems that recently market sentiment has been overly optimistic, and high-leverage trading has planted quite a few hidden risks.

As for the market, Bitcoin fell 2.7% to just over $104,000, while Ethereum was hit even harder, dropping 8.8% to $2,513. Other coins didn’t escape either—XRP fell by more than 5%, and Solana and Dogecoin both dropped by more than 8%. The main storm center of this network-wide liquidation was concentrated among several major exchanges, and the combined liquidation amount of just two of them reached more than $800 million.

To put it plainly, liquidation happens when leverage trading faces volatility that’s too high, and insufficient margin forces the exchange to liquidate positions. Although this mechanism is meant to control risk, when the market moves violently, it often triggers a chain reaction—liquidations one after another—further intensifying selling pressure in the market. With the scale of this network-wide liquidation being so large, it’s definitely a reminder to everyone to be cautious with leverage trading.