Crypto volatility wiped out $374M in leveraged positions, with long traders taking the largest hit before a sharp Bitcoin short squeeze.

Sharp price swings across crypto derivatives markets triggered a wave of forced liquidations during the past 24 hours. Data from the derivatives tracker Coinglass shows that 115,781 traders lost positions as volatility hit major assets. As per market insights, total exchange liquidations reached $374.23 million. Among them, Bitcoin and Ether account for the most losses.

Bitcoin and Ethereum Dominate Crypto Liquidations as Leverage Unwinds

Interestingly, there was a clear imbalance between long and short positions. Long traders absorbed the largest losses, with roughly $240 million in liquidations. In comparison, short liquidations totaled around $134 million. Such distribution suggests the market first moved lower, pushing bullish traders out before prices reversed.

In the past 24 hours, 115,781 traders were liquidated, the total liquidations comes in at $374.23 million.

The largest single liquidation order happened on Hyperliquid – $BTC value $4.45M. pic.twitter.com/znMIrhtgWU

— CW (@CW8900) March 4, 2026

Liquidations spread across several major derivatives exchanges. Binance recorded the largest share at $92.75 million. Hyperliquid followed with $70.90 million in liquidations, while Bybit saw $70.08 million in liquidations. Meanwhile, OKX and Bitget registered $36.45 million and $35.17 million respectively.

Binance alone represented almost one quarter of the total liquidation volume. As a result, its dominant position in global derivatives trading often places it at the center of liquidation events during volatile sessions.

Large-cap crypto assets absorbed most of the forced closures:

Bitcoin led the liquidation chart with $146.7 million in liquidations.
Ethereum followed with $78.7 million.
Solana came a distant third with $20.9 million in liquidations.

Combined losses in Bitcoin and Ethereum accounted for roughly 60% of total market liquidations. Activity in smaller altcoins, including Dogecoin, appeared in smaller clusters but carried far less weight.

Liquidation Clusters Build as BTC Moves Between $67K and $71K

Intraday price swings played a key role in the chain of liquidations. Bitcoin traded between roughly $67,000 and $69,000 for much of the day. During each dip, clusters of forced long liquidations appeared, with several bursts reaching $20 million to $25 million.

Image Source: Coinglass

Later in the session, momentum shifted sharply upward. Bitcoin surged toward $71,000 and triggered a strong short squeeze. As prices climbed, short liquidations surged to $70-$80 million in a single spike as bearish traders rushed to exit positions.

Such sequences often occur in derivatives markets during high volatility. Pullbacks tend to remove leveraged longs, while sudden breakouts pressure short sellers.

Broader derivatives data also points to an ongoing reduction in market leverage. According to CryptoQuant analytics, Bitcoin futures open interest has fallen sharply from late-2025 levels. Total open interest once stood near $47 billion during the previous cycle peak. Today, figures sit closer to $22 billion to $23 billion across exchanges.

The post Crypto Liquidations Hit $374M as Bitcoin Swings Trigger Long Wipeout and Short Squeeze appeared first on Live Bitcoin News.

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Filed under: Bitcoin - @ March 4, 2026 3:15 pm