Heavy long liquidations and falling open interest signal sharp deleveraging as spot demand weakens across U.S. markets.
Crypto derivatives markets faced intense pressure over the past 24 hours. More than 123,000 traders were liquidated as volatility accelerated across major exchanges. Total forced liquidations reached $249.77 million, reflecting heavy leverage built during prior rallies. A single $7.13 million Bitcoin position on Bybit marked the largest wipeout of the session.
Binance and Bybit See $128M in Liquidations as Leverage Unwinds
Bitcoin and Ethereum absorbed most of the damage on the day. Bitcoin liquidations totaled $75.36 million, while Ethereum saw $66.75 million erased. The combined losses in both assets exceeded half of the total market exits. Other cryptocurrencies accounted for just over $40 million, confirming pressure centered on major perpetual futures markets.
In the past 24 hours, 123,310 traders were liquidated, the total liquidations comes in at $249.77 million.
The largest single liquidation order happened on Bybit – $BTC value $7.13M. pic.twitter.com/bRicnn6Gh1
— CW (@CW8900) February 27, 2026
According to exchange data, Binance recorded $64.82 million in liquidations, while Bybit followed closely with $63.62 million. Meanwhile, long positions suffered the heaviest impact, with $148.07 million in liquidations. In comparison, short bets stood at $101.70 million. Nearly 60% of wiped positions were traders positioned for upside continuation.
Open interest trends point to aggressive deleveraging rather than routine profit-taking. Bitcoin open interest previously peaked between $45 billion and $47 billion during late-2025 highs. Since then, exposure has compressed sharply toward the low-$30 billion range. Acceleration lower coincided with Bitcoin’s break toward the mid-$60,000 zone.
Image Source: CryptoQuant
A typical liquidation chain reaction unfolded. Price slipped below a key support level, putting pressure on leveraged traders. As losses mounted, exchanges automatically closed positions. Selling accelerated as more long positions were forced out.
Open interest dropped quickly as contracts disappeared from the market. The $7.13 million Bitcoin liquidation on Bybit shows that both large players and retail traders were caught in the move.
Earlier in the cycle, open interest expanded aggressively while Bitcoin traded between $80,000 and $100,000. Rapid contraction now signals forced exits rather than orderly distribution. Such sharp declines often reflect traders unable to post additional collateral during drawdowns.
Bitcoin Struggles for Support as ETF Inflows Fade and Spot Selling Grows
Recent daily flows into U.S. spot Bitcoin ETFs totaled $254.46 million. ETF flows over the past few weeks have been mixed, with red outflows often occurring when prices were falling. In past pullbacks, steady ETF buying helped slow declines. Now, inflows are less consistent, giving the market weaker support during sharp drops.
Looking at the Coinbase Premium Index, recent readings show extended periods of negative premium. Bitcoin has traded at a discount on Coinbase relative to offshore exchanges. Historically, such conditions reflect selling pressure from U.S.-based spot participants.
Image Source: CryptoQuant
Forced liquidations in futures, falling open interest, uneven ETF flows, and a negative Coinbase premium all suggest traders are pulling back from risk. Leverage built at higher prices was quickly wiped out once support broke. Position sizes are now smaller, and speculation has eased.
Near-term direction may depend on whether spot buyers step in at current levels. Without steady ETF inflows and a return to a positive Coinbase premium, price swings could stay sharp as traders reduce exposure.
