1.58 million liquidations in 24 hours, totaling $202 million. Why have the bulls become the biggest victims of this downturn?

According to Coinglass data monitoring, the total liquidation volume in the crypto market over the past 24 hours reached a new high. A total of 158,173 traders were liquidated, with the total liquidation amount reaching $202 million. Among them, long positions dominated the liquidations, indicating that long investors have become the main victims of this round of correction. The largest single liquidation occurred on Hyperliquid-BTC-USD, amounting to $5.8577 million.

Liquidation Data Breakdown: Longs Becoming the Norm

From the liquidation structure, the plight of long positions far exceeds that of shorts.

The amount liquidated from longs is 2.24 times that of shorts. This ratio reflects the market’s true sentiment: in a generally optimistic crypto market, many investors established long positions, but recent price adjustments have shattered these optimistic expectations.

Market Background: BTC Decline Triggers Chain Reactions

Behind the liquidation wave is a weakening technical outlook. BTC’s current price is $87,796.40, which seems resilient, but recent trends are not optimistic:

• Down 0.16% within 1 hour
• Down 0.12% within 24 hours
• Down 0.59% within 7 days
• Down 3.06% within 30 days

Although the daily decline isn’t large, persistent downward pressure is squeezing the profit margins of longs. In high leverage environments, this slow but continuous decline often triggers liquidations, as investors’ stop-loss points are gradually approached.

Hyperliquid Becomes a Liquidation Concentration Point

The largest single liquidation occurred on Hyperliquid-BTC-USD, which is no coincidence. According to the latest news, Hyperliquid, as a decentralized perpetual futures exchange, has seen increasing trading activity recently. The platform not only features intense long-short battles on BTC but also on new tokens like LIT. In such a highly volatile environment, leverage trading risks are amplified exponentially.

New Tokens Increase Market Risks

Related information shows that Lighter (LIT) tokens have just completed TGE and started airdrops, experiencing long-short battles on Hyperliquid. Over the past day, total long positions in LIT reached $11.5 million, while short positions reached $13.62 million. LIT’s 24-hour decline is 18.9%, and such volatility has attracted a large influx of leveraged funds.

Investor Behavior Reflection: The Cycle of Greed and Fear

From the liquidation data, two key phenomena can be observed:

Excessive Concentration of Longs

69% of liquidations come from long positions, indicating that both the number of long investors and their position sizes are overly concentrated. This usually occurs when market sentiment is overly optimistic, and investors tend to chase gains. According to reports, some whale accounts have unrealized losses of tens of millions of dollars, showing that even large funds have been caught in long positions.

Widespread Use of Leverage

158,173 traders were liquidated within 24 hours. The reason for such a large number is mainly the widespread use of leverage. On derivatives exchanges like Hyperliquid, investors can trade with high leverage, which amplifies both gains and risks.

Summary

The core characteristics of this liquidation wave are long positions being trapped and risk concentrated. Although the liquidation volume of 158,173 traders sounds huge, it is just the tip of the iceberg compared to the total number of participants in the crypto market. The real points of concern are:

• Long liquidations account for up to 69%, indicating overly concentrated bullish sentiment
• Continuous small declines in BTC are gradually squeezing leverage space
• Derivatives exchanges like Hyperliquid are becoming risk concentration hubs
• The high volatility of new tokens attracts large amounts of leveraged capital, further amplifying risks

The clear takeaway for investors is: in derivatives trading, leverage is a double-edged sword. Any small market adjustment can be magnified into a liquidation under high leverage. Managing risk exposure and using leverage reasonably are always more important than chasing maximum returns.