Over $1.1B in Crypto Longs Liquidated as Bullish Bets Backfire After Circle IPO Rally

A wave of liquidations swept through the crypto market on Thursday, erasing bullish momentum sparked by Circle’s IPO and a recent resurgence in DeFi interest. More than $1.15 billion in leveraged positions were wiped out in just 24 hours, marking one of the steepest shakeouts in recent memory.

According to data from Coinglass, over 247,000 traders were liquidated, with the overwhelming majority being long positions — a sign of excessive optimism following days of upward momentum. The largest single loss was a $200 million bitcoin long on Binance, making it one of the most significant one-off liquidations of 2025. The identity of the trader remains unknown.

The sell-off dragged bitcoin (BTC) down by more than 3% to around $104,700, while ether (ETH) fell 8% to trade near $2,530. Other major altcoins fared no better: Solana (SOL) and Dogecoin (DOGE) each declined over 8%, and XRP slid to $2.20.

Exchanges Binance and Bybit saw the heaviest liquidation volumes, together accounting for more than $834 million in forced closures.

The sharp correction followed a euphoric stretch for crypto markets, driven by Circle’s IPO debut and renewed investor interest in U.S.-centric DeFi ecosystems. But the leverage-fueled rally proved fragile.

Liquidations occur when leveraged traders fail to maintain the necessary margin, prompting exchanges to automatically close their positions. This often triggers cascading effects during volatile sessions, amplifying price swings and creating a domino effect of forced selling.

Despite the drawdown, some analysts suggest the purge of excessive leverage could clear the way for more sustainable gains ahead.