$29.1M Ether Liquidation on Hyperliquid Amid $1B Crypto Market Wipeout

In the past 24 hours, a significant ether (ETH) trade on Hyperliquid led to the largest liquidation, amidst over $1.19 billion in leveraged positions being liquidated due to market downturns.
Long positions constituted nearly 90% of these liquidations, highlighting bullish overcrowding in the market.
ETH saw $448 million in liquidations, followed by bitcoin at $278 million, with Solana, XRP, BNB Chain, and dogecoin each experiencing tens of millions in losses.
The largest single trade closure was a $29.1 million ETH-USD long on Hyperliquid, indicating the influence of decentralized perpetual exchanges in recent liquidations.
Bybit experienced the highest overall liquidations at $311 million, followed by Hyperliquid with $281 million, and Binance with $243 million.
Hyperliquid's substantial share of liquidations stems from traders embracing risk on decentralized exchanges with a predominant long position.
Market sentiment remains fragile, with bitcoin exhibiting volatility around the $111,000 level. Liquidation spikes are sometimes viewed as clearing events for potential reversals, but risks remain due to stretched positions across major tokens.
Some experts suggest that projects with strong revenue streams may become attractive in this risk-averse environment.
Nick Ruck from LVRG Research notes ongoing capital rotation from Bitcoin to altcoins, with Perp DEXs like Hyperliquid leading the trend, expecting altcoins to gradually rise as investors seek projects with inherent utility.