Bullish bloodbath: $432 million liquidated in 24 hours, with long positions accounting for over 80%

The cryptocurrency market experienced a collective “liquidation” of longs in the past 24 hours. According to on-chain data, the total forced liquidation amount reached $432 million, including $348 million from long positions and $83.98 million from short positions. Behind this figure, over 110,000 accounts were forcibly closed, with the largest single liquidation occurring on the Hyperliquid BTC-USD trading pair, valued at $11.28 million.

Signal of Imbalance in Liquidation Data

Why Long Positions Became the “Hardest Hit”

Looking at the composition of liquidations, long positions accounted for 80.5% of the total, far exceeding the 19.5% from short positions. What does this severe asymmetry indicate?

This data is quite straightforward: the bulls were caught off guard during this decline. Bitcoin dropped 1.52% in the past 24 hours, and based on related information, its current price fluctuates around $91,474.94. Although the decline seems modest, it inflicted catastrophic damage on highly leveraged long positions.

Why Are Long Positions Particularly Vulnerable

Based on whale activity data from relevant sources, we can observe the true state of market longs:

• A Hyperliquid whale has held a BTC long position for two months but recently reversed to short, now holding three times the short position worth $12.95 million
• The largest on-chain BTC long position increased to $259 million but is floating at a loss of $1.982 million, with a liquidation price of only $81,157.4
• The “Strategy Opponent” whale, the largest short seller, is still increasing short positions despite floating losses

These signs indicate that market confidence among longs is wavering. High leverage combined with a slight price correction is enough to trigger chain reactions of liquidations.

Market Sentiment Behind On-Chain Data

Meaning of the Number of Liquidated Traders

112,166 traders were liquidated within 24 hours, which in itself reveals the problem—market participants generally used high leverage. If most traders had low leverage, such widespread liquidations wouldn’t occur.

Looking at the largest single liquidation of $11.28 million, it shows that platforms like Hyperliquid host a large number of high-risk positions. According to related information, Hyperliquid’s average daily trading volume has reached $348 million in recent times, making it an important venue for leveraged trading.

Why Are Long Positions Vulnerable Now

Combining insights from relevant sources, we can infer several factors:

1. Weak Rebound Momentum - BTC rose 4.20% over 7 days but fell 1.52% in 24 hours, indicating resistance to further upward movement
2. Changing Sentiment - Long-term longs are reversing to short positions, suggesting a shift in market expectations
3. Funding Pressure - Accumulation of highly leveraged positions means any negative news could trigger a cascade of liquidations
4. Increased Platform Competition - Reports mention Hyperliquid’s revenue was cut in half to $55 million in December (likely $5.5 million monthly), reflecting market liquidity dispersion

What to Watch Next

A large-scale liquidation of longs often signals a market bottom but could also mark the start of a new downtrend. The key is whether BTC can hold above the $81,000 support level.

According to related information, some whales are still maintaining long positions, indicating that some market participants remain optimistic about a rebound. However, the overall confidence among longs has undeniably weakened.

Summary

This wave of liquidations essentially reflects market participants’ misjudgment of price trends. Over 80% of liquidations came from long positions, indicating that overly optimistic sentiment is being corrected. The collective liquidation of over 110,000 traders highlights the widespread presence of high leverage trading in the crypto market.

For traders, this serves as a clear risk warning: in uncertain markets, high leverage is always a double-edged sword. Going forward, attention should be paid to whether BTC can stabilize above $90,000 and whether longs will continue to be liquidated. The next critical support level in the market is likely near the liquidation price of the largest forced seller.