Bitcoin, ether and XRP selloff wipes out $1.5 billion in leveraged crypto bets
A crypto selloff erased $1.5 billion in leveraged positions, with long bets making up nearly 84% of forced closures. The rebound is now squeezing short sellers, extending the liquidation cycle beyond the initial decline.
STOCK PHOTO · JONATHAN BORBAThe story
Bitcoin, ether and XRP fell in a move that wiped out $1.5 billion in leveraged crypto bets. Positions tied to rising prices accounted for nearly 84% of forced closures, and Binance handled almost half of the total liquidations.
The market has since begun to rebound, shifting pressure toward traders who had bet on further declines. That reversal makes the episode a two-sided liquidation event rather than a one-way washout.
Bitcoin, ether and XRP are the named assets affected, while Binance is the venue associated with almost half of the reported total. The mechanism is forced closure: leveraged long positions were liquidated during the selloff, followed by short positions coming under pressure as prices recovered.
The balance between long and short liquidations may change quickly as the rebound develops. The key open question is whether the recovery persists or gives way to another decline that reopens pressure on leveraged positions.
Further price moves and liquidation totals will show whether the event remains a contained deleveraging episode or develops into another round of forced closures.
Our read · Fri, Oct 30
A crypto selloff erased $1.5 billion in leveraged bets as long positions made up nearly 84% of forced closures.
Why. The liquidation cycle has already changed direction: long positions dominated the initial forced closures, but the rebound is now pressuring short sellers. Without a single-company catalyst or company-specific data, the setup is defined by the next price move and whether forced liquidations continue on either side.
Both cases
What could change this view: A renewed crypto selloff could trigger another wave of long liquidations, while a sustained rebound could accelerate short covering and reverse the positioning pressure.
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