Crypto Liquidations Surge: Long Traders Face Massive Bloodbath in 24-Hour Selloff

The cryptocurrency market witnessed a brutal liquidation cascade on December 23, 2025, with data from Coinglass revealing that digital asset traders lost significantly as positions were forcefully unwound. Over the past day, the total crypto liquidations spiked to $30 million, exposing the vulnerability of leveraged strategies in volatile market conditions.

Long Positions Bear the Brunt

The liquidation data tells a stark story: long position holders suffered disproportionately, accounting for $26.8 million of the total liquidations, while short sellers only faced $3.2 million in losses. This 8:1 ratio underscores how traders betting on upside movement were caught off-guard by the market’s downward pressure.

Bitcoin and Ethereum Lead Liquidation Volume

Bitcoin liquidations reached $10.6 million ($10.1 million from longs, $518,550 from shorts), while Ethereum experienced significantly higher liquidations at $73.5 million, with longs bearing $67.2 million of the damage and shorts losing $6.3 million. The disparity highlights how altcoin positions are particularly susceptible to rapid reversals when market sentiment shifts.

Scale of the Liquidation Event

A staggering 91,366 traders faced liquidations across the ecosystem. The severity peaked with a single catastrophic liquidation on Hyperliquid’s BTC-USD perpetual trading pair, where one position was forcefully closed at $4.4 million—a stark reminder of the risks inherent in crypto derivatives trading.

What This Means for the Market

The prevalence of crypto liquidations across multiple assets and the overwhelming focus on long positions suggests that leveraged bulls were overextended heading into this downturn. Such events often serve as capitulation signals, potentially setting the stage for market stabilization or even rebounds as forced sellers clear the order books.