$2.5 Billion in Crypto Liquidations Triggered by Massive ETH Sell-Off

A massive Ether liquidation on Hyperliquid set off a cascade of forced sell-offs, pushing total crypto liquidations past $2.5 billion in 24 hours.

One trader reportedly lost over $220 million on an ETH position, the largest single wipeout during the event. Hyperliquid recorded the biggest liquidation, closing a $222.65 million ETH-USD position automatically, according to CoinGlass.

Ether led the sell-off, dropping as much as 17% alongside Bitcoin and other major tokens amid thin liquidity. Overall, 434,945 traders were liquidated, with long positions accounting for $2.42 billion of the $2.58 billion total, while shorts contributed just $163 million.

Hyperliquid bore the brunt, posting $1.09 billion in liquidations—mostly long positions—representing more than 40% of total exchange losses. Bybit and Binance followed with $574.8 million and $258 million, respectively. Bitcoin and Solana saw roughly $788 million and $200 million wiped out.

Liquidations occur when leveraged positions exceed margin thresholds, forcing automatic closures that can cascade across markets. Traders monitor these events to gauge market sentiment, spot crowded trades, and identify potential reversals, especially in volatile, low-liquidity conditions.