The entire crypto market experiences over $1.1 billion in liquidation, with bulls suffering a brutal wipeout

The cryptocurrency market today experienced intense volatility, with the total liquidation volume across the network surpassing an astonishing $1.1 billion. According to on-chain data platform CoinGlass, the recent 24-hour liquidation wave was the most severe market adjustment in recent times. A large number of high-leverage traders were forced to cut losses, with long positions experiencing concentrated liquidations, reflecting a dangerous signal of market risk being released instantaneously.

Single Liquidation of $201 million Sets This Year’s Record

The most notable event in this wave of liquidations was a massive liquidation on Binance(Binance)BTCUSDT futures contracts. A long position worth as much as $201 million was forcibly closed, marking the largest scale since the beginning of 2026. Due to strict privacy protections by exchanges, whether this huge liquidation was driven by institutional funds or individual large accounts remains a mystery. The appearance of this liquidation also served as a trigger for the entire network’s liquidation event, causing a chain reaction in the market.

Over 240,000 Traders Hit, Binance and Bybit Become the Main Storm Centers

CoinGlass data reveals the terrifying scale of this liquidation wave: over 248,000 traders were liquidated within 24 hours, with total liquidation reaching $1.162 billion. Among them, $1.039 billion came from long positions, clearly reflecting recent overly optimistic market sentiment.

On the exchange level, Binance and Bybit became the central hubs of this liquidation storm, with a combined liquidation scale of up to $835 million, far surpassing other platforms. This concentration indicates that top-tier exchanges have higher leverage trading density, with risk exposure relatively centralized. Once the market reverses, it can easily trigger large-scale chain liquidations.

Mainstream Coins Decline Collectively, Risk Transmission Intensifies Market Selling Pressure

Real-time data shows that several mainstream cryptocurrencies have collectively retraced under the influence of the network-wide liquidation. Bitcoin(BTC) is currently at $89.56K, down -0.09% in 24 hours; Ethereum(ETH) is at $3.01K, up +0.31%; Ripple(XRP) is at $1.95, up +2.51%; Solana(SOL) is trading at $130.18, up +1.97%; Dogecoin(DOGE) is at $0.13, up +2.15%.

It is worth noting that although the liquidation wave has triggered market volatility, most mainstream coins have shown some resilience within 24 hours, reflecting that the market is seeking a balance. However, the panic and risk aversion caused by the network-wide liquidation still ferment, which could further suppress short-term market movements.

Understanding Liquidation Mechanisms to Prevent Chain Reactions

Liquidation(Liquidation) refers to the automatic forced closure of a trader’s position when using leverage, triggered when asset price fluctuations exceed expectations and margin is exhausted. This risk control design aims to prevent unlimited losses, but in volatile markets, it can easily cause a domino effect.

When many traders trigger liquidation simultaneously, exchanges are forced to sell large amounts of corresponding assets to cover margins. This concentrated selling pressure worsens market downward momentum, triggering more stop-losses and liquidations among traders, creating a self-reinforcing negative cycle. This is why a single massive liquidation can often lead to a network-wide liquidation event.

The network-wide liquidation event serves as a reminder to all traders that while leverage trading can amplify gains, it also multiplies risks. Overly optimistic market sentiment combined with high leverage often marks the most ferocious market adjustments. Managing positions cautiously and setting stop-losses have become essential practices for self-protection in volatile markets.