Ethereum (ETH) Open Interest Drop Could Reflect Forced Deleveraging After Record One-Day Purge

• ETH open interest dropped from $28B to $19B in 24 hours, the largest single‑day purge on record.

• Binance led liquidations (~$3.4B), followed by Gate.io (~$1.77B) and Bybit (~$1.6B).

• Open interest now sits about 50% below its $34B all‑time high (August 22), indicating significant deleveraging.

ETH open interest purge: Ethereum’s OI plunged from $28B to $19B in 24 hours—exchange liquidation breakdown, data-driven analysis, and what traders should do next.

What is the Ethereum open interest purge?

Ethereum open interest purge refers to the abrupt removal of leveraged derivatives exposure that caused open interest to fall from $28 billion to $19 billion within 24 hours on October 10, 2025. The event forced outsized liquidations across exchanges and materially reduced systemic leverage.

How many liquidations did major exchanges record?

The liquidation wave was concentrated on a few major venues. Binance accounted for roughly $3.4 billion in wiped positions. Gate.io reported approximately $1.77 billion in liquidations, while Bybit saw about $1.6 billion closed out. These figures reflect exchange‑level data aggregates and 30‑day moving average impacts.

Why did the purge happen now?

External macro developments acted as catalysts. Announcements of new tariffs affecting trade with China and sudden risk‑off moves in global markets triggered rapid position adjustments. High leverage levels amplified price moves and led to cascades of forced liquidations across derivatives markets.

What does this mean for ETH price stability?

The purge removed concentrated leveraged exposure, which can lower immediate tail‑risk by reducing the potential for rapid liquidation cascades. However, short‑term volatility may remain elevated as market participants reassess positions and liquidity providers adjust risk limits.

Ethereum’s open interest plunged from $28B to $19B in 24 hours, marking the largest single‑day purge in ETH history.

• ETH open interest fell from $28 billion to $19 billion in a single day, marking the largest recorded market purge ever.
• Binance led liquidations with $3.4 billion wiped out, followed by Gate.io ($1.77 billion) and Bybit ($1.6 billion) as leveraged positions were forcibly closed.
• The purge coincided with global events, triggering a cascade of forced liquidations and reducing overall leveraged exposure in the market.

Ethereum (ETH) has experienced its largest open interest purge to date, with a dramatic drop in market positions. Within 24 hours on October 10, 2025, ETH’s open interest fell from $28 billion to $19 billion, marking a record single‑day decline. The event underscores how concentrated leverage can intensify price moves and force rapid deleveraging.

Surge in Liquidations Across Exchanges

The ETH market faced widespread liquidations concentrated mainly on major derivatives platforms. Exchange data shows Binance led the wave with nearly $3.4 billion in positions liquidated. Gate.io and Bybit followed with roughly $1.77 billion and $1.6 billion respectively.

High leverage magnified losses for traders holding large directional positions. When price moves breached margin thresholds, automated forced closures unfolded rapidly, compressing open interest and extinguishing speculative exposure across the ecosystem.

Market observers such as Darkfost noted that the session represented intense market panic. The scale and speed of the deleveraging highlighted vulnerabilities in margining and risk management across venues.

Triggered by External Market Factors

The purge correlated with external macro announcements, including new tariff measures affecting China, which pressured risk assets broadly. These macro shocks combined with existing leveraged positions to create a cascade effect across exchanges.

ETH’s open interest now sits approximately 50% below its all‑time high of $34 billion recorded on August 22. This rapid contraction resembles a forced reset of exchange‑level leverage and prompts many traders to reevaluate risk and position sizing.

Darkfost and other market commentators highlighted that the deleveraging phase created both downside pressure and short‑term opportunities in select altcoins as positions were cleared.

Market Outlook Following the Purge

The largest open interest purge on record underscores market sensitivity to leverage. Short term, the removal of concentrated leveraged exposure may reduce the probability of immediate repeat cascades.

Trading desks and institutional participants are likely to adopt more conservative margining and monitoring. Over the medium term, lower exchange leverage could contribute to reduced systemic fragility, though correlation with macro events will remain a key volatility driver.

Frequently Asked Questions

How long will the market take to stabilize after such a purge?

Stability timelines vary by liquidity and macro conditions. After a large purge, markets can calm within days if liquidity providers reenter, but elevated volatility may persist for several weeks while leverage is reset.

Can traders avoid forced liquidations during similar events?

Yes. Key actions include using lower leverage, maintaining larger margin buffers, and employing stop‑loss orders. Institutional risk controls and diversified position sizing also reduce forced‑liquidation risk.

Key Takeaways

• Record purge: ETH open interest plunged from $28B to $19B in 24 hours, the largest single‑day contraction recorded.
• Concentrated liquidations: Binance, Gate.io, and Bybit accounted for the majority of forced closures, totaling billions.
• Risk management imperative: The event highlights the need for lower leverage, better margin buffers, and exchange risk improvements.

Conclusion

The Ethereum open interest purge represents a historic deleveraging event that materially lowered exchange‑level exposure and wiped billions from leveraged positions. Market participants should prioritize risk management and reduced leverage while monitoring macro catalysts. COINOTAG will continue reporting verified data and exchange‑level developments as they unfold.