The sudden drop in the value of Bitcoin has sent shockwaves across the cryptocurrency landscape, affecting tens of thousands of traders involved in leveraged trading. These individuals, who often try to maximize their potential profits through borrowed funds, found themselves in a precarious position as the market moved against them.

According to NewsBTC reports, in just one day, over 81,000 traders saw their positions liquidated, serving as a harsh reminder of the high-risk nature of leverage trading in the volatile crypto market.

Data from Coinglass vividly illustrates the chaotic events. The report stated that the total number of affected traders exceeded 81,400, resulting in staggering losses exceeding US$220 million due to the liquidated positions.

Among them, a particularly notable incident occurred on the OKX crypto exchange involving the ETH-USD-SWAP pair, where a trader faced a loss of US$7 million from the liquidation.

The impact of this flash crash revealed a significant bias in losses, primarily affecting long positions – those betting on price increases. According to Coinglass, a large 70.01 percent of the liquidated positions were long, resulting in over US$156 million in losses within a 24-hour period.

This trend towards long positions highlights the prevailing optimistic sentiment in the market before the decline, a sentiment that was suddenly corrected by the rapid market shift.

The distribution of liquidations across various exchanges further highlights the broad impact of the incident. OKX bore the heaviest burden, with liquidations on the platform accounting for nearly 46.87 percent of the total, reaching over US$104.61 million. Binance and Bybit followed suit, with significant liquidation volumes reaffirming the widespread nature of the event.

In terms of specific cryptocurrencies, Bitcoin and Ethereum led in liquidation volumes, evidence of their dominant positions in the market. Memecoins like Dogecoin and PEPE also saw significant activity, indicating that the effects of the crash were broad, encompassing various digital assets.

The liquidation trend extended beyond BTC and ETH cryptos alone, covering other cryptocurrencies such as Dogecoin, Solana, and PEPE. The diversity of affected assets illustrates the interdependence of the crypto market, where movements in major currencies like Bitcoin can have a domino effect on a wide spectrum of digital assets.

The concentration of liquidations among long traders in various time frames highlights the ongoing optimism that, in the face of market reality, may lead to significant financial setbacks. Coinglass data shows that even in shorter time frames, long position traders face the majority of liquidations, emphasizing the risks associated with bullish positions in a fluctuating market.