One trader lost more than $220 million on an ether position as a wave of forced liquidations swept the crypto market. The single largest hit occurred on decentralized derivatives exchange Hyperliquid, where an ETH‑USD position worth $222.65 million was wiped out, according to CoinGlass data. Over the same 24‑hour period, ether slid as much as 17%, and total market liquidations approached $2.58 billion.
Record $220M Ether Liquidation Event
The biggest single closure was the $222.65 million ETH‑USD liquidation on Hyperliquid, which stood out amid a broader sell‑off. Ether’s intraday drop of up to 17% coincided with thinner market liquidity, amplifying forced exits across leveraged positions. In total, 434,945 traders were liquidated during the move, with long bets making up the vast majority of losses.
Exchange Liquidation Breakdown
Liquidations were concentrated on a few venues, with Hyperliquid suffering the heaviest damage. The exchange recorded $1.09 billion in forced closures, accounting for more than 40% of the day’s total liquidations. Bybit and Binance followed, reporting about $574.8 million and $258 million in liquidations respectively.
- Hyperliquid: $1.09 billion in liquidations, mostly long positions.
- Bybit: $574.8 million in liquidations.
- Binance: roughly $258 million in liquidations.
Across exchanges, roughly $2.42 billion of the $2.58 billion total came from bullish (long) bets, while shorts accounted for about $163 million. For context on how ETH and BTC positioning can differ in such episodes, see Bitcoin and Ethereum losses which compares recent liquidation patterns.
Market Impact Analysis
Ether bore the largest share of the sell‑off, with more than $1.15 billion in ETH positions liquidated in the past 24 hours. Bitcoin followed with roughly $788 million in liquidations, and Solana saw close to $200 million wiped out, according to the liquidation heatmap data. These figures show how one asset’s sharp move can disproportionately affect leveraged positions in that market.
Liquidations happen when leveraged trades are forcibly closed after price moves exceed a trader’s margin threshold, and they often trigger cascade effects in thin markets. Traders monitor liquidation spikes alongside open interest and funding rates because these metrics can reveal overcrowded trades and potential entry or exit points. For a closer breakdown of long versus short pressure in ETH and BTC, see ETH longs vs BTC shorts.
Why this matters
For miners operating anywhere from a single rig to hundreds, sharp market moves like this mainly affect the value of mined coins rather than mining operations directly. A rapid ETH decline can lower the fiat value of newly mined rewards and temporarily increase selling pressure if holders rush to cover margin calls. At the same time, liquidation‑driven volatility can influence funding rates and sentiment, which matter if you hedge or trade derivatives.
Even if you don’t trade on margin, liquidation waves signal elevated market risk: funding costs can swing and exchanges may experience liquidity gaps that widen bid‑ask spreads. That makes short windows of heightened price volatility more likely, affecting when you might choose to sell or convert mining proceeds.
What to do?
Risk management is the most practical response for miners who receive rewards in crypto. Prioritize straightforward actions that reduce exposure to sudden market swings without requiring trading expertise. Below are clear steps to consider; pick those that match your setup and risk tolerance.
- Reduce leverage: avoid borrowing or using high leverage when market liquidity is thin.
- Stagger conversions: convert mined ETH to fiat or stablecoins in smaller tranches to avoid selling at local lows.
- Keep margin buffers: if you use derivatives, maintain extra collateral to reduce liquidation risk.
- Monitor funding rates and liquidity: watch funding and order book depth around major moves before placing large trades.
- Have a contingency plan: set clear rules for when to sell, hold, or hedge based on price moves you can tolerate.
