Bullish

Crypto Liquidations Hit Record $19B Amid Tariff Shock

19:32

$19B in leveraged positions were forcibly closed in 24 hours, affecting 1.6M traders. Longs comprised $16.7B, while perp open interest dropped 43% on major exchanges.

Woofun AI reports that between October 10 and 11, 2025, approximately $19 billion in crypto leveraged positions were liquidated within 24 hours following the announcement of a 100% tariff on Chinese imports. This event impacted over 1.6 million traders, with long positions accounting for $16.7 billion of the total. Open interest in perpetual contracts on major exchanges fell by 43%, dropping from $217 billion to $123 billion, while Hyperliquid saw a 57% decline from $14 billion to $6 billion.

Market makers estimate actual forced liquidations may have reached $30 billion to $40 billion. Subsequent data shows $1.08 billion in liquidations affecting 182,000 traders on January 20, 2026, and $2.2 billion on February 1, with longs comprising 80% to 85% of those closures.

WOOFUN AI

Impact Assessment · Quick Read

The record $19 billion liquidation event highlights extreme sensitivity of leveraged positions to macroeconomic policy shifts, particularly trade tariffs. The dominance of long-side liquidations suggests that high leverage was concentrated on bullish bets, creating cascading sell pressure when sentiment reversed. The significant drop in open interest indicates a rapid deleveraging cycle, which may reduce immediate volatility but leaves the market vulnerable to future shocks if leverage rebuilds.

Generated by WOOFUN AI · For reference only, not investment advice