A sharp market downturn triggered more than $2.5 billion in crypto liquidations over the past 24 hours, highlighting the risks of heavy leverage during periods of thin liquidity. One of the largest single losses was a $222.65 million ether position liquidated on the Hyperliquid exchange.
Ether bore the brunt of the sell-off, with over $1.15 billion in leveraged positions wiped out as the token slid by as much as 17%. Bitcoin followed, seeing roughly $788 million in liquidations, while Solana accounted for close to $200 million as prices across major assets tumbled.
The bulk of the forced closures were concentrated in long positions, amplifying downside pressure as liquidations fed into further price declines. The episode underscores how crowded leveraged trades can unravel quickly, setting off cascading moves that may either deepen losses or pave the way for sharp market reversals once selling pressure is exhausted.$ETH
