Crypto liquidations reach $144M in four hours as longs get crushed

The crypto futures market just had a very bad afternoon. A total of $144 million in liquidations hit within a four-hour window, with long positions absorbing $125 million of that pain. That means roughly 87% of the forced closures came from traders betting prices would go up.

What happened and why it matters

Liquidations in crypto futures occur when a trader’s position loses enough value that their margin can no longer support it. The exchange forcibly closes the trade, often at the worst possible moment. In English: you put down a small deposit to make a big bet, the market moves against you, and the house takes your chips before the losses get worse.

CoinGlass, the primary real-time aggregator that tracks liquidation data across major centralized exchanges, captures these events on hourly, four-hour, and 24-hour timeframes. The platform has become the go-to dashboard for monitoring how leveraged traders are positioned and when those positions start blowing up.

Major exchanges like Binance and Bybit are typically where the bulk of this activity plays out. During sharp market moves, long liquidation rates on these platforms have frequently exceeded 90% of total forced closures. This latest event fits that pattern almost exactly.

A familiar pattern in 2025

ETF flow data, macroeconomic news releases, and profit-taking have all served as catalysts for these selloffs. Earlier in mid-2025, a comparable event saw roughly $129 million in long liquidations attributed primarily to Bitcoin positions.

Bitcoin and Ethereum consistently lead liquidation volumes by market share during these events, which makes sense given their dominance in futures trading.

What this means for investors

For anyone trading crypto futures with leverage, the math here is uncomfortable but straightforward. The vast majority of liquidations in this event came from longs. That tells you the market was crowded on one side, and crowded trades in leveraged markets have a nasty habit of unwinding violently.

Traders who insist on using leverage should be watching positioning data on CoinGlass as closely as they watch price charts. When long-to-short ratios get lopsided, that’s the market telling you a liquidation event is one bad candle away. The traders who survived this four-hour window were either positioned conservatively or not positioned at all.

For spot holders, these events are mostly noise. Prices dip, leveraged traders get flushed, and the market moves on. But for anyone running leveraged positions on Binance, Bybit, or any other major derivatives exchange, these cascades are the tax you pay for using borrowed capital in a market that moves this fast. And $125 million in long liquidations is a pretty expensive tax bill.

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