The liquidation situation in the crypto market this year has been quite painful. According to public data, the total nominal forced liquidation of longs and shorts across the entire network in 2025 reached approximately $150 billion, with an average of $400 million to $500 million in positions being forcibly closed daily. This number does not reflect a black swan event but a harsh reality: most liquidations stem from excessive leverage being ruthlessly wiped out during market volatility.

The most impressive period was from October 10 to 11. During these two days, triggered by macroeconomic shocks (including tariff policy statements and other negative news), the market suddenly initiated systemic deleveraging. Within 24 hours, $19 billion worth of positions were liquidated, and the actual loss scale could be even more terrifying. During that wave, BTC dropped from $120,000 to around $100,000, causing many high-leverage investors to be directly forced out during this crash.

Interestingly, such extreme liquidation events have actually played a role in market self-purification. Once these speculative bubbles are thoroughly cleared, the subsequent market structure tends to become healthier. After October, open interest (OI) in futures contracts shrank significantly, and market volatility entered a low-recovery phase. From another perspective, this is the market self-regulating its risk.