Nearly $1.7 billion in crypto liquidations hit markets in the past 24 hours as leveraged longs were forced closed, with Dogecoin, Solana, and Ethereum suffering the largest losses; concentrated leverage and thin liquidity in altcoins caused cascading margin calls that wiped out over 390,000 traders.
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Nearly $1.7B wiped out in 24 hours
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Dogecoin (-9.9%), Solana (-6.9%), Ethereum (-6.2%) were top losers; Bitcoin fell ~2.3%
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Over 390,000 traders liquidated; long positions accounted for ~95% of losses
Crypto liquidations wipe nearly $1.7B as Dogecoin, Solana and Ethereum lead losses; read causes, key data, and risk-management steps to protect leveraged positions.
What caused nearly $1.7 billion in crypto liquidations?
Crypto liquidations were driven by concentrated leveraged long positions and thin altcoin liquidity, which triggered cascading margin calls across major exchanges. Data from CoinGecko and Coinglass show outsized long liquidations—more than $1.6 billion—pushed risk assets sharply lower within hours.
How much was lost and which tokens led the sell-off?
Across major exchanges, about $1.68 billion in positions were liquidated in 24 hours, with long positions representing roughly 95% of losses. Dogecoin fell ~9.9%, Solana ~6.9%, and Ethereum ~6.2%, while Bitcoin declined about 2.3%. Total crypto market cap dropped to roughly $3.98 trillion after a 3.7% daily decline.
Why did leveraged longs dominate the liquidations?
Leverage magnifies exposure: when large-cap altcoins roll over, margin calls force forced closures. Market analytics firm Coinglass reported more than $1.6 billion of the wipeout came from long positions, with only about $84 million from shorts. This pattern indicates overexposed bulls were squeezed rather than a short squeeze.
Who commented on the market move?
Dan Dadybayo, research and strategy lead at Unstoppable Wallet, described the event as an “aggressive flush of leverage from the system,” noting cascading margin calls at the peak. Vincent Liu, chief investment officer at Kronos Research, labeled the mechanics a “classic liquidity spiral,” where leveraged longs widened spreads and drained liquidity.
How should traders manage exposure to leverage after a liquidation wave?
- Reduce leverage: Lower margin ratios to limit forced closures during volatility.
- Diversify sizes: Avoid concentration in thinly traded altcoins that can gap during spikes.
- Use stop-management: Implement sensible stop-loss settings and position sizing rules.
- Monitor funding rates: Watch perpetual funding and leverage metrics to avoid crowded longs.
- Keep cash buffers: Maintain capital reserves to meet margin calls without liquidating core positions.
Frequently Asked Questions
How many traders were liquidated in the crash?
Over 390,000 traders were liquidated in the 24-hour period, including a largest single order of about $12.7 million on OKX’s BTC-USDT swap, per Coinglass data.
Did this event reflect a short squeeze?
No. Market data and expert commentary indicate roughly 95% of liquidations were longs, showing this was an overexposure flush rather than a short squeeze.
Key Takeaways
- Magnitude: Nearly $1.7B wiped out in 24 hours, mostly long positions.
- Concentration: Dogecoin, Solana, and Ethereum led losses due to thinner liquidity and leverage.
- Action: Traders should reassess leverage, diversify, and maintain margin buffers to reduce forced liquidations.
Conclusion
The recent crypto liquidations highlight the risks of concentrated leverage in altcoins and the fragility of liquidity during sharp moves. Market data from CoinGecko and Coinglass, and expert commentary from Unstoppable Wallet and Kronos Research, point to forced long unwind as the core driver. Monitor macro indicators and manage leverage to navigate further volatility.
Published: 2025-09-22 | Updated: 2025-09-22 | Author: COINOTAG
