More than $1 billion in crypto liquidated in the last day

Crypto prices took a big dive, dropping around 10% for Bitcoin and other coins, leading to a huge amount of leveraged positions getting liquidated in just 24 hours. There’s no clear reason for this sharp drop, but a lot of people think it’s just market makers trying to mess with the market by wiping out long positions. I personally got rekt when my Bome position over $140 got liquidated. I think traders need to be more cautious, spread their strategies, and stick to lower leverage to protect their funds. My SUI position almost got liquidated too when it dipped below $2.5, but luckily it bounced back.

It seems you didn't heard the news about Bybit hacked? I don't know which one is true, but some news said $1.5b was hacked from Bybit, and other news said it's $1.4b. That was big news; it was also discussed here on the forum that I know it gonna hurt the market a bit, just like what happened yesterday and today. So it's not a manipulation but an effect on what happened recently; actually, this is an opportunity to others to buy at a low price, but I don't know if this is the last wave of the drop; there might be another wave later for a retest, which is a good opportunity to find a good short position if it breaks.

The movement was expected. It's a correction, and it happens every once in a while in a normal market. You are even lucky, it was just around 10^% after 24 hours… back in the day, it would do over 30% in 24 hours. Do you have any risk management strategies for your positions? Stop losses? Liquidations will hurt your accounts in the long run. Think about it.

If you are trading alt, it is better not to use leverage at all because it will surprise if the coin fall 2x in just few minutes to one or two hours during bear market. It would be good if you use little amount of money to trade them. Some people will sell very well to liquidated some people and the market will bounce back in a way the person will feel sorry for himself and thinking not to use leverage next time.

Losing $140 through liquidation is hard to think if that happens to me. I mean whenever I enter a position, I immediately put a stop-loss depending on what's happening on the market. Losing $140 through a stop-loss would be fine, but through liquidation? I guess you need to change something whether it's your emotion (greedy), or your strategy as a whole. Thanks for your advice though, but advice yourself to put a stop-loss whenever you're trading please. As for what happened with the market, I just can't forget the fact that I already put a short position at $91,000 yesterday, and closing it way early (profit still). If only I held it for a few more hours, I could've doubled my money in that position. Anyway, this kind of liquidation is becoming normal already. I mean we've seen a $10B liquidation weeks ago, and around millions of dollars getting liquidated as well after the Bybit hacking incident. TBH, I don't know what's the reason with this drop, and I don't want to say that the Bybit incident is the culprit since it happened days ago already, but whatever the case is. I hope that everybody's okay still, and took the opportunity to buy Bitcoin and other altcoin at a much cheaper price as well.

The collapse of FTX within a week as consequences of bad management and bankrun effects is still new and hot enough for many people. Bybit is a very big exchanges and people in 2025 have reasons to fear about a similar collapse like FTX 2 years ago. There was bankrun from customers by withdrawing mass money from Bybit, and it's reasonable action. Bybit seems to manage fund better than FTX and they already successfully and smoothly proceeded mass user withdrawals in latest days. Fear of a collapse of Bybit will vanish soon, but to be safe with our fund, it makes sense to stay outside Bybit and wait for dust settle. It needs time like several weeks before it's enough evidence and time to say Bybit is fine and already handle their crisis well.

Altcoins are very risky. Know that they have different approaches while trading them. It is good not to use leverage while trading altcoins and also have extra trading fund on your derivative trading account and make use you used the hedge mode instead of the isolated mode. Use small amount to begin the trade. For bitcoin, use low leverage. I prefer using just 1x leverage. This can not result to liquidation of someone's fund until you close the position yourself.

Well, people have to start selling their positions when they're trading what do you think will happen anyway Kinda disappointed that we didn't manage to break 100k resistance after all and now new resistance is 90k. Already first attempt to break it failed today but surely we'll get a few chances before we decide. Long months of profit and bullish momentum, I guess February was about time to get the first big red flag. 1x means not using leverage

Well its not a shocking thing yet this is how this market works on which there's always those market makers whom do really love on liquidating those neither long or short positions. This isnt something new on which movements could neither be that in line with some negative or positive sentiment or totally moves on its own without any such reason? There's always that who do sit into the top or simply with those market makers on which you could be able to see the market will really be having its movement without any back up sentiments or reasons behind. This what makes the market even more harder to predict and this is why these kind of liquidations are really that indeed common. These liquidations will really be that something that we can see forever because the market will really be having those times that hitting up those stop loses and liquidations.

It's clear that many are panicking due to the massive Bybit hack of all time... People started to think it would be bearish hence more market liquidation. Fortunately, we are not doing any trading at the moment so the current position is quite calm and no matter if the market drops below $90K, traders will probably panic and many will definitely be liquidated in this kind of market.

This actually happened last year too, either during November or December period of last year, and that day, I had a trade that was liquidated. It's not something that is new, some traders just need to be aware that no matter how good they are or how good their strategy is, they can not be accurate all the time. The manipulation in the market most time is caused by the big banks traders to liquidate a lot of retail traders and buy at a discount price.

I believe that exchanges are manipulating the market. Bybit lost lots of money, their 96% of the liquidations are long positions and they need immediate recovery, so I'm sure they are manipulating the price to liquidate users. A few years ago I was actively trading on Binance and I've heard many times how exchanges manipulate the market to make lots of profit. I believe this is not a conspiracy because I've seen sudden price spikes and drops at moments when it didn't make sense but those changes were enough to liquidate people. Imagine there is a bull run and there is a huge sudden drop like 20% drop for a minute and then the price goes up to its original place. This is definitely a manipulation, isn't it?

I think everyone need to be prepared for anything that is going to make the price of most crypto assets to depreciate. We might see more bear movement in the market as time goes on which is as a result of fud that is making many people to sell their crypto assets. A lot of traders are panicking of what could happen in the market next especially for those that had just invested their funds in the crypto market. Everyone need to be patient and keep holding because it would not make any sense if you decide to sell part of holdings because of the panic selling in the market. Maybe we should see this downward movement as an opportunity to buy more portfolio before we start seeing bull movement again.

Despite the fact that you don't see any reasons for a market dump, there are reasons due to the fact that America has imposed duties of 25% on goods from Canada and Mexico. Nevertheless, this is not the largest liquidation: at the beginning of the month, according to the CEO of Bybit, positions worth 8-10 billion dollars were liquidated - https://x.com/benbybit/status/1886393172152156604

It still involves leverage if you are trading derivatives because; 1. You can short, something that is not possible with spot trading 2. There is a liquidation price whether you are Long/buy or short/sell, something that does not happen in spot trading (just check out with Bitcoin and tell me I am lying  )

One trend I have seen in this crypto space is that investors always anticipate the price to keep going up, so people are not always happy seeing the price drop 10% -20% of it's price value. From the technical analysis perspective of the market I don't see any reason why to panic because what Bitcoin is doing is retracing of it price break out,  we forgot that after Bitcoin broke $73k previous ATH, Bitcoin hasn't officially come back into that zone in the weekly and monthly time to confirm it's price break out and that's what exactly Bitcoin is doing now and liquidating those that are greedy and  doesn't understand what is trading in the market.

agreed, also the liquidation price is not at zero even if we use 1x leverage which means no leverage but still has liquidation point anyway, because it's future contract and the contract bear interest which needs to be fulfilled. it's more like the fact that it's future contract, mean there's much more fee compared to just buying directly in spot market, definitely bad for long term holding. just imagine holding coin which price suddenly dumped to near zero with future contract due to error or something else and then getting liquidated while spot market buyer just chilling holding their coin without the risk of liquidation.

If you use leverage, and with collateral, you will always have risk of liquidation from exchange. A lower leverage, a lower risk of liquidation, but it is never 0. If your cryptocurrency assest used as collateral collapses and loses most of its value, your leverage position will certainly be liquidated even you only use 1x leverage. Trading in any types, make sure to use Stop loss order. One of the Best Weapons in Trading. It can help you to defend your trading position, avoid liquidations, and protect your initial trading capital better.

Haha yeah, I know, tho technically for me, 1x isn't leverage as there were many derivatives in forex times when I started allowing you to short, but no leverage option, so you had your capital, that's it. I know Binance and all them CEXs still call it 1x leverage but... by definition I've always considered that not. Anyway This explains it. You are not using leverage but you have a liquidation price because of associated costs. But this applies to any derivative, which has a point of expiration, unlike spot.

The crypto perpetual contracts have no expiration dates, though. Maybe because of the margin maintenance requirements, funding fees etcetera. So even when one is not technically borrowing any funds for the position, the minimum margin maintenance level ends becoming one's collateral, thus leading to a liquidation price around that level.