🚨 Bitcoin Plummets 5% to $118K in Flash Crash—$577M Liquidated in 60 Minutes

Bitcoin just got sucker-punched. A 5% nosedive to $118,000 triggered a bloodbath for leveraged traders—half a billion in positions vaporized faster than a meme coin’s utility.

Liquidation carnage: The flash crash left over $577 million in wreckage, with longs getting steamrolled. Classic crypto—where ‘hedging risk’ is just something Wall Street boomers say.

Why it matters: Even at 2025’s prices, volatility still bites harder than a regulator’s empty threat. Bulls got reminded: no one’s safe when the market decides to flip the table.

The cynical take: Some hedge fund manager is probably blaming ‘macro conditions’ while secretly liquidating his yacht.

According to the firm, such elevated leverage can magnify upward rallies and downward corrections, exposing traders during sudden market swings.

Long traders lose over $500 million in 1 hour

Data from Coinglass reveals that the sharp price movements triggered $577 million in liquidations within just one hour.

Long traders, who expected prices to climb further, bore most of the losses, totaling $545 million. Short positions lost $31 million.

Ethereum traders suffered the most, with liquidations exceeding $177 million. Bitcoin traders lost around $113 million, while XRP and Solana positions were liquidated for $44 million and $39 million, respectively.

When the liquidation window is expanded to the past 24 hours, total losses reach $1.05 billion. Long positions account for $778 million of that figure, underlining the heightened risks during periods of rapid price adjustments.

These figures highlight the extreme volatility inherent in crypto markets. Sudden corrections can erase significant unrealized gains, especially when Leveraged positions dominate trading activity.

For traders, this is a reminder that strong uptrends are often accompanied by equally sharp pullbacks, emphasizing the importance of risk management strategies in volatile markets.