- •$405M liquidated from crypto trades in 24 hours
- •Short positions led with $229.58M losses
- •Market volatility remains a key factor
The crypto market has witnessed a dramatic spike in liquidations, with over $405 million in positions wiped out within a single day. According to on-chain analytics, short sellers bore the brunt, with losses amounting to approximately $229.58 million, while long positions faced liquidations worth around $176.10 million.
This wave of liquidations reflects the high volatility and unpredictability that continues to define the crypto landscape. For both novice and seasoned traders, this serves as a stark reminder of the risks involved in leveraged trading.
Shorts Take a Bigger Hit Than Longs
Short positions were hit harder than longs in this latest round of liquidations. A short position profits when the asset price falls—but with many cryptocurrencies rebounding from recent dips, those betting against the market suffered steep losses.
This could indicate that market sentiment is shifting slightly bullish, leading to short squeezes where traders are forced to close their positions at a loss, driving prices even higher in a feedback loop.
UPDATE: Over $405M were liquidated in the last 24 hours, with $229.58M from shorts and $176.10M from longs. pic.twitter.com/qvDNLeOhvp
— Cointelegraph (@Cointelegraph) October 6, 2025
What This Means for Traders and the Market
These liquidations highlight the importance of risk management in crypto trading. Leveraged trades can multiply both gains and losses, and rapid price swings can trigger automatic sell-offs. This $405M wipeout emphasizes the need for caution and preparation when entering high-leverage positions.
As the market continues to fluctuate, such liquidations are expected to remain a regular occurrence. Traders should watch key price levels, stay informed, and use stop-loss orders to protect their positions.