58,000 people were liquidated within 24 hours, totaling $67.62 million, with long positions accounting for over 57% of the liquidations.

In the past 24 hours, the crypto market experienced a “liquidation wave.” According to Coinglass data, a total of 58,633 traders were liquidated worldwide, with total liquidation amounting to $67.6237 million. Among these, long positions accounted for $38.9888 million, and short positions for $28.6394 million. The largest single liquidation occurred on the Hyperliquid exchange, involving the FARTCOIN-USD trading pair, with an amount of $1.4637 million. Behind this large-scale liquidation reflects a rapid decline in market risk appetite.

Interpretation of Liquidation Data

Long positions are the main victims

From the liquidation structure, long positions account for 57.6%, while short positions account for 42.4%. This indicates that bullish investors suffered greater losses. Coupled with Coinbase Bitcoin premium index being negative for five consecutive days (currently -0.126%), it shows that selling pressure in the mainstream US market is increasing, and investors’ risk aversion is rising. Under these conditions, traders who have doubled down on leverage to bet on rising prices are the first to be liquidated.

Warning from the FARTCOIN liquidation event

The largest single liquidation of $1.4637 million occurred on the FARTCOIN-USD trading pair. FARTCOIN is a newly launched coin that went live on October 23, 2024. It currently has a market cap of $390.27 million and a 24-hour trading volume of $59.51 million. As a new coin, its price volatility is often higher, and liquidity is relatively weaker. Under such conditions, even seemingly small price fluctuations can trigger significant liquidations. Although this liquidation amount ranks first among single events, it reflects the high risk associated with new coins and leveraged trading.

Summary of Market Risk Signals

These signals collectively point to a conclusion: market optimism is waning, and risk appetite is decreasing.

The Cost of Leverage Trading

From the data, the 58,633 liquidations may seem large, but this is only a 24-hour snapshot. It reflects the widespread use of leverage in the crypto market—many retail traders amplify gains through futures trading, but at the same time, they also amplify risks. When the market moves against their positions, these leveraged positions can be liquidated in an instant.

Note: A common saying in the market is “You can’t make big money without leverage,” but in reality, the liquidation data proves the opposite—those who use leverage are more likely to lose everything. Long-term investors are often those who avoid leverage and stick to spot holdings.

Summary

This liquidation wave essentially reflects a shift in market sentiment. Multiple signals—negative Coinbase premium, capital outflows, bearish altcoin outlook—point in the same direction: risk is accumulating. The liquidation of 58,633 traders and the $67.6237 million in losses are just surface phenomena of this sentiment change. The deeper issue is that when the market shifts from bullish to cautious, high-leverage positions are the first to be cleared out. This serves as a reminder to all participants: in uncertain markets, exercising caution is more important than chasing extreme gains.