Network Experiences Sharp Spike in Liquidations: Over 117K Traders Hit in 24-Hour Period Worth $501M

Market data from August 13 reveals a significant liquidation event swept across trading platforms, with more than 117,380 traders experiencing forced position closures. The cumulative liquidation volume reached $501 million across the system in just 24 hours, marking a substantial market correction.

Breaking down the liquidation composition, short positions accounted for the majority of losses at $357 million, while long positions contributed $144 million to the total liquidated amount. This roughly 3:1 ratio of short-to-long liquidations suggests bearish market sentiment dominated the period, with traders betting on price declines facing particularly harsh consequences.

The scale of this liquidation event underscores the volatility and leverage risks inherent in crypto trading. With over 117,000 individual traders forced to exit their positions, the impact extends beyond financial losses to include widespread market sentiment shifts and potential cascading effects on trading activity. The relatively higher short liquidations indicate that despite prevailing bearish positions, the market experienced sufficient upside movement to trigger a wave of forced closures among leveraged short holders.