Mass Liquidations Wipe Out 1.48M Traders in 24 Hours, Totaling $9.37B, Coinglass Says

Over the past 24 hours, crypto markets saw one of their sharpest leverage resets in recent memory. Data from Coinglass indicates that more than 1.48 million trader accounts were liquidated, with total positions worth approximately $9.37 billion closed out. The wave hit across major centralized exchanges and affected both long and short positions, underscoring how quickly highly leveraged bets can unravel during abrupt price swings.
Liquidations occur when traders using margin fail to maintain required collateral as asset prices move against them. Once thresholds are breached, exchanges forcibly close positions to limit further losses, often accelerating volatility. During fast moves, this can cascade: liquidations push prices further, triggering even more liquidations in a self-reinforcing loop.
The latest wipeout highlights the persistent fragility of leveraged derivatives activity. While leverage can amplify gains, it also magnifies risk exposure to sudden market shocks and liquidity gaps. For retail participants, the episode is a reminder to size positions conservatively, diversify collateral, and avoid excessive leverage that can be eliminated in minutes. For institutions and market makers, it underscores the importance of robust risk engines, circuit breakers, and cross-venue liquidity monitoring during periods of stress.
Looking ahead, traders will watch for signs of stabilization in open interest, basis, and funding dynamics as the market digests this reset. Historically, large liquidation events can clear froth and set the stage for more measured price discovery—but only if subsequent flows return in an orderly fashion. Until volatility cools and liquidity depth improves, prudent risk management remains the top priority for participants across spot and derivatives venues.