Crypto Market Liquidations Hit 310 Million Dollars in Only 12 Hours
The crypto market saw a sharp and sudden shakeout as traders faced a massive wave of long position losses within only 12 hours. The drop erased more than 310 million dollars and created a new round of fear across major tokens. Traders watched the decline unfold at high speed as volatility increased across every major exchange. The impact felt intense because traders expected stability after weeks of sideways movement.
This intense wipeout did not appear out of nowhere. The market already showed signs of fatigue as liquidity thinned near major resistance zones. Many traders used leverage to chase quick gains which increased the risk. Crypto market liquidations hit new levels because leveraged long trades could not hold their positions during rapid price swings. The move reminded traders that the market reacts fast when sentiment weakens.
The sudden shock also created a wider discussion across the industry about risk management. Many analysts warned that the market volatility surge could continue because whales and institutions tested support levels. Retail traders faced the strongest hit because they built aggressive long positions in anticipation of a bullish breakout. The collective liquidation showed how quickly market conditions can turn when fear grows in the crypto space.
JUST IN: $310,000,000 in long positions liquidated from the cryptocurrency market in the past 12 hours. pic.twitter.com/L853K4q5el
— Whale Insider (@WhaleInsider) December 11, 2025
Why Long Traders Took the Biggest Hit during the Selloff
Long traders faced heavy pressure because leverage levels reached extreme ranges across major exchanges. Traders expected strong upside momentum but the market changed directions within hours. This created a perfect setup for long position losses across Bitcoin, Ethereum and high beta altcoins. Most of these trades failed to survive even small price dips because leverage amplified every move.
Analysts pointed out that funding rates also pushed traders toward long bias. Many traders ignored early warning signs and added more leverage near resistance. This pattern increased exposure and triggered a chain reaction of liquidations once prices moved lower. Crypto market liquidations built rapidly because each liquidation event pushed prices even lower. This feedback loop hit the market at high speed and shocked the entire community.
How Market Volatility Surge Triggered the Liquidation Wave
The market volatility surge played the biggest role behind the meltdown. Volatility spiked after several macro events including shifting rate expectations and fresh uncertainty in global markets. Traders reacted quickly and moved capital away from risky assets which included several crypto tokens. The shift pulled liquidity out of the market and increased price sensitivity across major pairs.
During this period, price movements grew unpredictable because buyers stepped back. Lower buyer strength allowed sellers to control momentum which pressured leveraged positions. Crypto market liquidations climbed every hour because even small drops wiped out overexposed traders. Exchanges recorded sharp spikes in liquidation activity and witnessed the highest volumes in weeks.
What Traders Should Watch Moving Forward
Traders should track key support zones because they show where buyers may step in again. A strong bounce from these areas can reduce liquidation pressure and create fresh opportunities. However, weak support could trigger another wave of liquidations as the market tests lower levels.
They should also monitor leverage levels because rising leverage often signals another potential shakeout. The market volatility surge remains a key risk factor and may remain active for several days. Long position losses highlight the need for careful risk planning and realistic expectations during unstable periods.
Crypto market liquidations will remain a major theme until conditions stabilize. Traders must avoid emotional decisions and focus on data because sentiment shifts quickly in this environment.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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