Crypto traders faced $1.53 billion in forced liquidations over 24 hours after Binance's security breach, with bets on rising prices making up most of the total. Bitcoin fell to about $76,460 before recovering toward $78,500, and the rebound has begun to close short positions.
Crypto traders betting on higher prices had about $1.29 billion in positions forcibly closed over the past 24 hours. The selloff followed Binance's security breach and pushed bitcoin, ether and smaller tokens lower.
Total liquidations reached $1.53 billion by Friday morning in Asia, according to CoinGlass. Long positions accounted for 83.8% of the total.
Binance breach triggers the forced closures
The liquidations followed Thursday's Binance breach, which the exchange estimates affected about $6.3 billion in assets. Binance has pledged to cover losses and suspended deposits and withdrawals while conducting security checks.
Bitcoin fell as low as about $76,460 before recovering toward $78,500. Ether traded around $2,240 after dipping below $2,200, while SOL, XRP and dogecoin were also lower.
Bitcoin and ether lead the liquidations
Leveraged traders put up a fraction of a position's value as collateral. When prices move far enough against them, the exchange closes the trade automatically to prevent further losses. Closing longs typically generates sell orders, adding pressure while prices are already falling.
Bitcoin positions accounted for about $499 million in liquidations and ether another $358 million. Solana followed at $82.6 million, XRP at $38.1 million and dogecoin at $18.6 million.
Binance recorded $754.6 million in forced closures, or 49.2% of the market-wide total. Hyperliquid followed with $251.4 million and Bybit with $186.5 million.
Rebound starts catching short sellers
The rebound has begun to hurt traders betting on further declines as well. Shorts accounted for $57.3 million of the $85 million liquidated in the latest four hours.
Closing a short requires buying back the position, so traders caught betting against a recovery can help push prices higher as they exit.
Source: CoinDesk
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