According to sources, the crypto market liquidation has wiped out over $1.12 billion in trader positions within 24 hours, making it one of the biggest sell-offs seen recently. More than 252,000 traders lost their positions as markets turned sharply lower.
The sudden fall in digital assets pushed many long bets into forced closures. Major exchanges reported heavy activity as traders rushed to cover their losses.
How severe was the liquidation wave?
The scale of the wipeout was massive and caught many traders by surprise. Long positions made up $1.04 billion of the total losses, while short positions added $83.88 million.
Ethereum took the biggest hit with $428.11 million liquidated in a single day. Bitcoin saw $273.60 million cleared, and Solana faced $75.20 million, with experts saying this kind of Crypto market liquidation often points to a wider change in market mood.
Also read: $860 Million Wiped Out as Liquidations Hammer Crypto Markets
Which assets suffered the most?
Ethereum led the downturn as traders betting on its rise were caught off guard. A large liquidation of $29.12 million occurred on the ETH USD pair at Hyperliquid. Bitcoin also fell sharply from $113,660 to around $109,500.
Solana and other altcoins like XRP, Avalanche, and Dogecoin added pressure to the sell off. Crypto market liquidation data showed that Ethereum traders were hit the hardest, with some losing millions in just a few hours as ETH fell 7 to 13% below the important $4,000 support level.
| Metric | Value |
|---|---|
| Total Liquidation Value | $1.12 billion |
| Number of Traders Affected | 252,000+ |
| Long Positions Liquidated | $1.04 billion |
| Short Positions Liquidated | $83.88 million |
| Largest Single Liquidation | $29.12 million (ETH,USD on Hyperliquid) |
| Ethereum Liquidated | $428.11 million |
| Bitcoin Liquidated | $273.60 million |
| Solana Liquidated | $75.20 million |
| Crypto Market Cap Drop | ~3.5% drop to about $3.75 trillion |
| Market Sentiment Indicator | Crypto Fear and Greed Index shifted to caution |
What are experts saying about the trend?
Market watchers said the event showed again how risky high leverage is in trading. A trader on X said that this level of Crypto market liquidation shows how fast confidence can disappear when prices fall.
Analysts explained that margin calls created a chain reaction where early losses led to more positions being wiped out. Data from Coinglass showed that most of the forced closures happened after Ethereum dropped below $4,000.
How did prices react after the sell-off?
Ethereum was valued at around $3,928 after falling back from a high of $4,273. Bitcoin slipped under $110,000 and later held close to $109,500. The total market value of cryptocurrencies reached approximately $3.75 trillion.
This showed a fall of nearly 3.5% according to CoinMarketCap. Traders linked this decline to the Red September pattern, where the crypto market liquidation usually rises during periods of broader weakness and volatility.
Also read: How $460 Million in Short Liquidations Flipped the Crypto Market
What does this mean for investors?
The sharp downturn has left investors divided. Some view the crypto market liquidation as a sign that high leverage still threatens market stability.
Others believe that these corrections offer chances to buy, particularly for long term holders of $BTC and $ETH. Market strategists said institutional investors might take advantage quietly, accumulating positions while waiting for market sentiment to improve.
Conclusion
Based on the latest analysis, the crypto market liquidation of $1.12 billion shows how risky using leverage can be in cryptocurrencies. Ethereum and Bitcoin had the biggest losses, showing how fast market momentum can change.
Retail traders faced large losses, but some institutions are looking at this drop as a chance to buy and build positions. The next few days will show if the market calms down or continues to fall further.
Summary
Over $1.12 billion was lost in crypto market liquidation in 24 hours, affecting more than 250,000 traders. Most losses came from bets that prices would go up, while some short positions were also closed.
Ethereum fell below $4,000 and Bitcoin dropped under $110,000, with Solana, XRP, Avalanche, and Dogecoin also losing value. Traders faced heavy losses, but some investors saw this as a chance to buy. Experts said this crypto market liquidation shows how quickly the market can turn when prices fall.
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Glossary
Margin Call : A broker’s demand for extra funds when losses exceed allowed limits.
Red September: Historically volatile period in crypto markets during September.
Cascading Effect: A chain reaction where one liquidation triggers others.
Leverage: Borrowed funds used to amplify trading positions.
Recovery Potential: Likelihood that the market may rebound after a downturn.
Frequently Asked Questions about Crypto Market Liquidation September 2025
How many traders were affected by the liquidation?
More than 250,000 traders lost their positions in crypto market liquidation September 2025.
Which cryptocurrencies faced the largest losses?
Cryptocurrencies, including Ethereum, Bitcoin, and Solana, faced the largest losses.
How much was lost in long positions?
Long positions accounted for $1.04 billion of the losses.
What caused the liquidation wave?
A sudden market downturn and forced margin calls caused the current crypto liquidation.
How did Ethereum react to the sell off?
Ethereum fell below $4,000 and was valued at around $3,928.
What does this mean for investors?
Some see it as a risk from high leverage, while others see buying opportunities.
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