Leveraged crypto traders lose $150 million in one hour as liquidations spike

Nearly $150 million in leveraged crypto positions were liquidated within an hour on Thursday, January 8, as sharp selling pressure swept through digital asset markets and forced the unwinding of long bets across major platforms.

Hyperliquid, a decentralized derivatives exchange, accounted for $45 million of the liquidations—the largest share among platforms.

The cascade unfolded in two waves: approximately $88.23 million liquidated around 7:00 a.m. UTC, followed by another $57.02 million roughly an hour later, according to data from crypto.news. The rapid succession highlighted how quickly overleveraged positions can unwind during volatile sessions.

Hyperliquid recorded the largest share of the Crypto long liquidation totaling roughly $45 million and also logged the single biggest liquidation order of the session valued at $3.63 million according to the figures.

In the past 24 hours, cumulative Crypto long liquidation volumes climbed to $464.44 million impacting more than 137,000 traders as volatility rippled across major tokens.

Bitcoin accounted for $66.53 million of the Crypto long liquidation total nearly double the $33.78 million recorded for Ethereum underscoring heavier leverage concentration in BTC markets.

The latest Crypto long liquidation wave followed $486 million in net redemptions from U.S. spot Bitcoin exchange traded funds a day earlier the largest single day outflow since November 20 adding to bearish momentum.

Price action reflected the pressure driving the Crypto long liquidation with Bitcoin down 1.7% on the day, Ethereum sliding 2.8%, and XRP falling 6.8% after more than $6 million in liquidations during the same hourly window.

The liquidation cascade coincided with a 2.19% drop in total crypto market capitalization, underscoring how leveraged positioning amplifies short-term volatility. As of Thursday afternoon UTC, funding rates on major perpetual futures contracts remained slightly negative, suggesting bearish sentiment persists.

Whether the selloff marks a temporary deleveraging or the start of deeper correction will depend on spot market stability and whether institutional flows reverse in coming sessions.