Long Squeeze Wipes Out $1.0B in Bullish Crypto Bets

Edgen Crypto

·Feb 05 2026, 17:55

Share to

Share to

Copy link

Key Takeaways

The cryptocurrency market experienced a severe deleveraging event as a sudden price drop triggered a cascade of forced liquidations. Over a 24-hour period, more than a billion dollars in leveraged long positions were wiped out, amplifying downward market pressure and affecting over 255,000 traders.

Massive Liquidation: The market saw $1.18 billion in total liquidations, with long positions accounting for the vast majority at $1.007 billion.
Major Assets Hit: Bitcoin bore the brunt of the sell-off with $534 million in liquidations, followed by Ethereum with $198 million.
Widespread Impact: The event affected 255,169 traders, with the largest single liquidation being an $11.36 million Bitcoin position on the Aster exchange.

Leveraged Bets Collapse in $1.18 Billion Purge

The cryptocurrency market underwent a violent deleveraging over the past 24 hours, resulting in $1.18 billion in total liquidations. The event disproportionately punished bullish traders, as forced closures of long positions accounted for $1.007 billion, or roughly 85% of the total value wiped out. This type of rapid, cascading liquidation is known as a "long squeeze." It occurs when a sudden price drop forces highly leveraged traders who bet on rising prices to sell their holdings to cover their positions. The forced selling adds intense downward pressure, triggering further price drops and liquidating more positions in a vicious cycle.

Bitcoin Accounts for $534M as 255,169 Traders Are Liquidated

Bitcoin led the market-wide sell-off, with liquidations on the asset reaching $534 million. Ethereum followed with $198 million in forced sales. The scale of the event was widespread, impacting 255,169 individual traders across various exchanges. The single largest casualty of the market rout was a trader on the Aster exchange, who saw an $11.36 million long position on the BTCUSDT pair forcibly closed. Such large, single-event liquidations highlight the high-stakes risks associated with leveraged crypto trading and can further accelerate market volatility.