Heavy selling triggers over $400M in crypto liquidations

The Economic Times reported on May 23 that more than $400 million in crypto positions were liquidated across exchanges in a 24-hour stretch as Bitcoin and Ethereum extended losses. The report said selling pressure persisted even as headlines pointed to easing tensions between the United States and Iran. CoinGlass data cited in the report showed the move was driven by leveraged positions being forced out as prices fell. The episode added to a week in which crypto traders were already contending with macroeconomic concerns and weaker risk appetite. ### Where did the $400 million figure come from? The Economic Times said on May 23 that more than $400 million was liquidated in one day across major crypto platforms. The outlet attributed the figure to market-wide liquidation data and said the losses came as Bitcoin and Ethereum both remained under pressure. (economictimes.indiatimes.com) CoinGlass, which tracks derivatives and liquidation activity across crypto venues, showed large swings in forced closures during the same period. Its liquidation dashboard said 161,111 traders were liquidated over the previous 24 hours, with total liquidations later rising above $900 million, underscoring how fast the figures can change as prices move. ### What does a liquidation mean in this market? (economictimes.indiatimes.com) A liquidation in crypto derivatives happens when an exchange closes a leveraged position because losses have consumed the trader’s collateral. CoinGlass describes its liquidation data as a measure of futures long and short positions being forced out across exchanges, which traders use to track shifts in leveraged risk. More leverage makes those moves more severe. (coinglass.com) When prices fall quickly, long positions can be closed automatically, adding more sell orders into a falling market and deepening the decline. That feedback loop is why liquidation totals are watched closely during abrupt crypto selloffs. ### Why did selling continue despite U.S.-Iran easing headlines? CoinDesk reported on May 23 that Bitcoin initially moved higher after President Donald Trump said an agreement had been largely negotiated between the United States, Iran and other countries. (coinglass.com) But the Economic Times said that relief did not hold, with macroeconomic concerns, ETF outflows and broader geopolitical uncertainty continuing to weigh on sentiment. (coinglass.com) The Economic Times said Bitcoin and Ethereum both extended losses during that period. Its report framed the liquidation wave as part of a broader risk-off move rather than a single headline-driven reaction. ### Why do liquidation totals move so quickly? (coindesk.com) CoinGlass updates liquidation totals in real time, so a figure reported at one point in the day can be materially different hours later. On May 24, the same dashboard showed total 24-hour liquidations of about $940.56 million, well above the more than $400 million figure cited a day earlier. That gap does not necessarily mean the earlier report was wrong. (economictimes.indiatimes.com) It means the reported number captured a specific 24-hour window, while later market moves added more forced closures as volatility continued. ### What should traders watch next? (coinglass.com) CoinGlass market pages show open interest, funding rates and exchange-by-exchange liquidation data alongside the headline liquidation totals. Those metrics can indicate whether leverage is still being flushed out or whether the market is stabilizing after a cascade. The next concrete check is the rolling 24-hour liquidation data on CoinGlass and spot prices for Bitcoin and Ethereum on May 24 and May 25. (economictimes.indiatimes.com) If another sharp move hits, those dashboards will show which side of the market — longs or shorts — is taking the larger losses. (coinglass.com 1) (coinglass.com 2)