What happened?
More than 1.66 million crypto traders were liquidated in the past 24 hours, wiping out about $19.33 billion in positions. Bitcoin and Ethereum led the losses, with roughly $5.38B and $4.43B liquidated, and long positions made up the bulk of the damage. The sell-off accelerated after President Trump threatened 100% tariffs on Chinese imports, triggering a sharp risk-off move that pushed the global crypto market cap down over 9%.
Who does this affect?
This mainly hits highly leveraged retail and derivatives traders who used margin, but it also pressures exchanges and funds that faced huge forced liquidations. Large whales and some opportunistic shorts profited in venues like Hyperliquid, while many smaller traders suffered significant or catastrophic losses. Broader crypto investors and institutions feel the knock-on effects through lower prices, higher volatility, and tighter liquidity.
Why does this matter?
The market impact is severe: massive deleveraging can deepen volatility, push prices lower, and reduce liquidity across exchanges. That raises risk for traders and can spook institutional investors, potentially slowing inflows and increasing funding costs for crypto firms. Even if geopolitical tensions ease and prices bounce, the realized losses reshape leverage, risk management, and market confidence going forward.