Collapse Sequence: How Did Short-Sell Deals Vanish Within 24 Hours?
The liquidation mechanism in the crypto currency derivatives market relies on a violent feedback loop; when the margin on open positions falls, platforms execute market buy orders, which pushes the price up and ignites a new wave of liquidations.
During these events, short-selling positions accounted for about 92% of the total positions forcibly closed, worth $2.77 billion, compared with only $264 million for long positions.
CoinGlass platform data showed that short positions worth $1.29 billion were closed within just one hour. The damage was distributed among the largest platforms as follows:
Binance recorded total liquidations of nearly $518 million.
The decentralized platform Hyperliquid absorbed around $513 million in liquidations.
Bybit recorded forced losses of about $303 million.
The remaining amounts were distributed across OKX and dYdX, along with some smaller platforms.$ETH
The liquidation mechanism in the crypto currency derivatives market relies on a violent feedback loop; when the margin on open positions falls, platforms execute market buy orders, which pushes the price up and ignites a new wave of liquidations.
During these events, short-selling positions accounted for about 92% of the total positions forcibly closed, worth $2.77 billion, compared with only $264 million for long positions.
CoinGlass platform data showed that short positions worth $1.29 billion were closed within just one hour. The damage was distributed among the largest platforms as follows:
Binance recorded total liquidations of nearly $518 million.
The decentralized platform Hyperliquid absorbed around $513 million in liquidations.
Bybit recorded forced losses of about $303 million.
The remaining amounts were distributed across OKX and dYdX, along with some smaller platforms.$ETH