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Bybit Records $10M BTC Short Liquidation Amid Market Surge

Key Points:

  • Main event, leadership changes, market impact, financial shifts, or expert insights.
  • Largest single-order liquidation on Bybit.
  • BTC surpasses $120K, prompting major liquidations.

A $10 million BTC/USD short position was liquidated on Bybit on August 13, 2025, aligning with Bitcoin’s price exceeding $120,000 and contributing to $5 billion in global cryptocurrency liquidations.

The $10M liquidation highlights the volatility in Bitcoin markets, stressing the importance of risk management as the price surge affects over 117,000 traders.

The surge in Bitcoin’s price resulted in the liquidation of a $10 million BTC short order on Bybit. The event on August 13, 2025, is part of a record-breaking $5.01 billion in global liquidations, significantly impacting the cryptocurrency market. Prominent figures like Arthur Hayes emphasized the importance of prudent leverage management amid volatility. The liquidation event also observed significant institutional activity, with BlackRock’s ETF arm recording $359 million in inflows.

“This level of liquidation shows why prudent leverage and stop management remain critical in volatile markets.” — Arthur Hayes, Co-Founder, BitMEX

The immediate effects included a dramatic shift in trader dynamics, with 117,380 participants impacted in one day. BTC’s price movement played a key role, affecting ETH and other major altcoins, triggering cascading liquidations across various exchanges. The considerable liquidations resulted in stressed liquidity at multiple exchanges, though prompt institutional purchases quickly restored market stability.

Potential outcomes from this event may involve stricter regulatory oversight on leverage practices. Historical trends suggest that such large-scale liquidation spikes can trigger market corrections. Continued institutional confidence, as evidenced by ETFs and endowment inflows, may provide a balancing effect on the sector.

Disclaimer:

The content on nftenex.com is provided for informational purposes only and should not be considered financial or investment advice. Cryptocurrency investments carry inherent risks. Please consult a qualified financial advisor before making any investment decisions.

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