Bitcoin reacts as $615M crypto liquidations hit in 24 hours

• Lyla Velez
• February 23, 2026
• News
• 0 Comments

Key Points:

• Swift directional price swing triggered margin breaches and forced liquidations.
• Falling collateral outpaced margin additions, prompting exchanges to close positions.
• High leverage and thin spot liquidity amplified slippage and cascading margin calls.

Roughly $615,000,000 in leveraged crypto positions were forcibly closed in the past 24 hours, based on data from Coinglass. The figure reflects aggregated liquidations across major derivatives venues and assets, representing both long and short positions.

The proximate cause was a swift, directional price move that pushed many margined trades below maintenance thresholds. When collateral values fall faster than traders add margin, exchanges close positions to protect market integrity.

This type of liquidation wave is typically amplified when leverage is elevated and spot order books are thin relative to derivatives open interest. As positions unwind, slippage increases, widening the move and triggering additional margin calls.

How liquidation cascades happen on crypto derivatives

Crypto perpetuals and futures are marked to a reference price. If equity in a position drops below maintenance margin, the exchange’s risk engine liquidates all or part of the position. The sell (or buy-back) order itself can move price, which may force neighboring positions into breach.

Funding rates and open interest shape this dynamic. Positive funding with heavy long positioning can make markets vulnerable to downside shocks; the inverse can pressure shorts on sharp rebounds. In both cases, forced unwinds can cascade through correlated assets.

Social feeds often focus on the headline size rather than structure. As one market commentator, Ash Crypto, said: “WOWWW!! THIS IS CRAZYYY … $620,000,000 WORTH OF CRYPTO POSITIONS WERE LIQUIDATED IN THE LAST 24 HOURS …” While emotive, the reaction underscores how quickly leverage can reset when volatility spikes.

Risk controls, such as partial liquidation, auto-deleveraging queues, and insurance funds, are designed to mitigate systemic slippage. Outcomes still vary by venue and by how much liquidity is available at each price level during stress.

By the numbers: assets, venues, long vs short

Total liquidations reached about $615 million over 24 hours, covering both sides of the book. Bitcoin (BTC) featured prominently in tracking and discussion around the move, consistent with its role as the primary collateral and liquidity hub for crypto derivatives.

Centralized exchanges, including large venues such as Binance, host the bulk of perpetual and futures activity where these liquidations occur. Venue-level splits and a precise long-versus-short breakdown were not specified for this event.

At the time of this writing, broader market context shows Coinbase Global (COIN) closed at $160.24, down 6.48% on the day, according to Yahoo Finance. While not a direct driver, equity-market sentiment around listed crypto firms can reflect risk appetite during volatility resets.

Methodologically, reported liquidations aggregate forced position closures across instruments and venues and can differ by provider due to index pricing, inclusion criteria, and cutoff windows. Figures are best viewed as estimates of leverage reset rather than exhaustive tallies.