Bitcoin, Ethereum lead $217 million liquidation cascade in 24 hours

Business Oct 28, 2025

On Tuesday, the crypto market took a sharp downturn, with over $217 million in leveraged trades liquidated within 24 hours.
Bitcoin and Ethereum led the drop, forcing both long and short positions to close—about $167 million from longs and $50 million from shorts.

Leverage and overconfidence: the real culprits

The sudden price dip triggered automatic margin calls, setting off a chain reaction known as a liquidation cascade.
Smaller coins like Solana and XRP got caught up too, as traders scrambled to cut their losses.
Analysts say the real issue was too much leverage and market overconfidence—a reminder that high-risk trading can backfire fast, especially when crypto prices swing wildly.