$100 Million in Crypto Longs Liquidated in One Hour as Market Plunges

Traders in the cryptocurrency market were jolted by an extraordinary one-hour liquidation event in which $100 million in long positions were wiped out, marking one of the most dramatic single-hour corrections in recent memory. The incident unfolded in the early hours of August 18, 2025, as leveraged positions across major digital assets faced sudden and sharp downward price movements, triggering automated sell-offs and stop-loss orders [1].

The scale of the liquidations pointed to a highly leveraged and bullish market that had become unprepared for a rapid reversal. Over $125 million of the $126 million in liquidated positions were longs—bets that prices would rise—leaving traders exposed as the market shifted rapidly [1]. The impact was most pronounced on Ethereum and Bitcoin, where sharp corrections led to the forced closure of positions that had been held with the expectation of further gains.

This event did not occur in isolation. Over the preceding 24-hour period, more than $730 million in positions were liquidated across the crypto market, with Ethereum and XRP long positions each losing over $100 million [1]. The data suggests that long positions were significantly more vulnerable than short ones, highlighting the prevailing bullish sentiment and the risks of overexposure to upward momentum.

The liquidations reflect a broader pattern of extreme volatility in the crypto market, where leverage can amplify both gains and losses. As prices dipped slightly, the leverage embedded in many positions caused cascading liquidations, triggering further downward pressure and deepening the downturn. Analysts have noted that such feedback loops are common during periods of high leverage, where automated systems and stop-loss orders contribute to self-reinforcing price declines [1].

While the exact cause of the sharp sell-off remains unclear, the timing aligns with ongoing bearish momentum in the market. Traders who had positioned themselves to capitalize on rising prices found themselves on the wrong side of the trade as the market turned. The speed and scale of the losses serve as a stark warning about the dangers of leveraged trading in an environment where volatility can shift in an instant.

The psychological impact of such events is also significant. Beyond the financial losses, the event has reinforced the perception of crypto as a highly unpredictable asset class. For long-term investors, the sharp correction may represent an opportunity, but for leveraged traders, it underscores the importance of disciplined risk management, including the use of stop-loss orders and careful position sizing.

As the market stabilizes, the lessons from this one-hour liquidation wave are clear: leverage can magnify gains, but it also multiplies risks. Without robust safeguards and a clear understanding of market conditions, traders remain vulnerable to sudden and severe losses [1].

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[1] Instagram (https://www.instagram.com/reel/DNfBcpxh3lc/)