Summary: Bitcoin liquidation cascade wipes out $646 million in 24 hours

Crypto Carnage: Bitcoin Drop Triggers $646 Million Liquidation Tsunami! A dramatic plunge in Bitcoin's price recently unleashed a massive liquidation cascade, wiping out a staggering $646 million from leveraged traders in just 24 hours. This swift market retreat, seeing BTC slide from $119,500 to $115,300, disproportionately punished optimistic long positions. Over three-quarters of the forced liquidations, a hefty $492.6 million, came from bullish bets caught off guard by the downturn. While Bitcoin itself saw $152 million in liquidations, predominantly from longs, Ethereum also took a significant hit with $152 million, though its liquidations were more balanced between long and short positions. Solana and XRP contributed to the pain, losing tens of millions in long exposure as well. The epicenter of this market-wide wipeout was Binance, accounting for nearly a quarter-billion dollars in net liquidations, with Bybit and OKX also seeing substantial forced closures. These three exchanges alone managed about 80% of the total forced exits. The most intense period occurred within a single four-hour block, where over $200 million in positions were violently closed, primarily longs. This rapid, automated unwind created a self-feeding cascade effect, amplifying the price movement. Despite the intense flush, Bitcoin has shown resilience, stabilizing just above $115,000. This suggests the spot market effectively absorbed the sudden influx of BTC from liquidated positions. Moreover, funding rates for perpetual swaps have returned to neutral, indicating a healthy reset of previously overheated bullish leverage.