Ethereum News Today: 117,380 Traders Affected in $5.01 Billion Crypto Liquidation Record

Over 117,380 traders were impacted as $5.01 billion in crypto positions were liquidated across global exchanges on August 13, 2025, marking the largest single-day liquidation event in recorded history [1]. The data, sourced from Coinglass, revealed that both long and short positions faced significant losses, though short positions accounted for a larger share of the total [1]. Major exchanges such as Binance, OKX, BitMEX, and Bybit reported heightened activity during the 24-hour period, reflecting the widespread impact of the event [1].

The liquidation surge coincided with notable price movements in key cryptocurrencies, including Bitcoin (BTC) and Ethereum (ETH). BTC's price reached $119,351.92 with a market capitalization of $2.38 trillion [1], though its 24-hour trading volume declined by 9.93%. Meanwhile, ETH and other major coins experienced shifts that disrupted open interest ratios and forced traders to adjust or close positions. The event underscores the heightened volatility and leverage-driven nature of the crypto market [1].

Arthur Hayes, co-founder of BitMEX, provided insight into active trading during the period, revealing that he sold 2,373 ETH at $3,507 each, totaling $8.32 million. He also disclosed a recent Ethereum purchase using 10.5 million USDC, highlighting the active participation of seasoned traders amid market turbulence [1].

The August 13 liquidation far surpassed previous records, including the $343 million in liquidations reported on August 10, 2025 [1]. This sharp escalation signals a growing reliance on leveraged trading strategies, as noted by the Coincu research team, which attributes such volatility to extensive use of leverage among retail and institutional traders [1]. Analysts suggest that regulatory scrutiny and institutional intervention could play a stabilizing role in future market conditions [1].

Community responses emphasized the recurring nature of large liquidation events, with traders and analysts pointing to the risks of over-leveraging. Exchanges, while providing granular data, have not yet offered deeper commentary, likely awaiting more stable market readings before further analysis [1].

This event highlights the fragility of leveraged positions in fast-moving crypto markets and raises important questions about risk management and regulatory oversight. As liquidation volumes continue to hit record levels, the need for clearer market parameters and compliance frameworks becomes increasingly evident [1].

Source: [1] Record Liquidation: $5.01 Billion Crypto Implosion (https://coinmarketcap.com/community/articles/689c07d978c8230288c23fdf/)