Over $871 million in crypto long positions were liquidated within 24 hours this week as market jitters over fresh tariff threats triggered a sharp sell-off. The data, spanning major exchanges, shows the biggest single-day wipeout of leveraged longs since last December, catching traders who had bet on continued price gains off guard.
What sparked the sell-off
The liquidation cascade began Tuesday morning Asia time after reports emerged that the U.S. is weighing new tariffs on imported steel and aluminum under Section 232 authority. The news rattled global markets — crypto included. Bitcoin dropped roughly 6% in two hours, and altcoins took heavier blows. Ethereum fell nearly 9% before recovering some ground. The selling pressure triggered a wave of margin calls, forcing exchanges to close out leveraged long positions at accelerating pace.
Long positions hit hardest
Of the $871 million liquidated, more than 85% were long positions — bets that prices would rise. That's a familiar pattern in sudden drawdowns: crowded longs get squeezed, and the forced selling pushes prices lower, triggering another round of liquidations. Binance, OKX, and Bybit accounted for the bulk of the activity, though exact exchange-level figures weren't immediately available.
What traders are facing now
The timing isn't great. Open interest in Bitcoin futures had climbed steadily over the past two weeks, suggesting fresh leverage entering the market. Those positions are now gone, and funding rates have flipped negative on several platforms — meaning shorts are now paying longs. That could signal a period of consolidation or further downside if tariff headlines keep coming. For now, the market is watching for the next official announcement from Washington or Beijing.
No new trade policy details have been confirmed since the initial reports. Traders are left waiting.
