Leverage Unwound: Imperfect Data Hints at Even Deeper Crypto Liquidation Crisis

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A deepening Bitcoin rout triggered a cascade of liquidations approaching $2 billion on Friday, but the true scale of forced selling may be significantly larger.

While CoinGlass data points to 396,000 traders being wiped out—including a single $36.78 million position—reporting inconsistencies across major exchanges like Binance and OKX mean the headline number is likely an undercount.

The catalyst for the liquidation cascade was a plunge in BTC to $82,000, which broke the crypto market’s key $3 trillion support level. The sell-off was exacerbated by historic outflows from Spot Bitcoin ETFs, which bled $903 million in a single day.

The statistics paint a grim picture: Bitcoin is now on pace for its worst month since the 2022 crypto winter and its weakest fourth quarter in six years, a period that is typically its strongest.