$400M in Crypto Longs Liquidated in 10 Minutes — What Triggered the Wipeout

Approximately $400 million in long positions were liquidated across the crypto derivatives market in a 10-minute window on May 23, 2026, as Bitcoin dropped nearly 4% and dragged leveraged traders into a cascading forced-sell event.

The figure, first reported via live CoinGlass liquidation tracking data, represents one of the sharpest short-duration wipeouts of 2026. According to unconfirmed reports citing real-time CoinGlass metrics, the $400 million figure consisted almost entirely of long positions, meaning traders who had bet on rising prices were forcibly closed out as the market moved against them.

Long Liquidations (10 min)

$400,000,000

Across major crypto derivatives exchanges — Source: CoinGlass

Bitcoin fell from a 24-hour high of $77,434 to $74,606, a decline of 3.62%. The global crypto market cap dropped 3.27% to roughly $2.575 trillion, with BTC dominance at 58.06%.

How This Compares to Recent Liquidation Events

The speed of today’s cascade echoes a pattern that has defined May 2026. On May 18, $526 million was liquidated in a single hour, with $510 million of that coming from long positions. That event ultimately totaled $657 million in 24 hours and wiped out over 108,000 traders. The largest single liquidation order was an ETH-USDT position worth $28.49 million on Bitget.

The $400 million in 10 minutes today suggests a comparable, if not faster, rate of forced closures. For context, the largest single-day liquidation event of 2026 remains the February 6 wipeout, which saw $1.84 billion liquidated across the market.

ETH and BTC bore the heaviest losses during the May 18 event, with ETH accounting for $244 million in long liquidations and BTC contributing $160 million. A similar asset concentration is likely in today’s event, though a full breakdown by token has not yet been confirmed.

An Overleveraged Market Meets Macro Headwinds

The liquidation cascade did not occur in a vacuum. BTC spot ETFs recorded net outflows of $1.039 billion for the week of May 11-15, ending six consecutive weeks of inflows. ETH spot ETFs posted negative $255 million in the same period. That institutional repositioning, combined with America’s second-largest bank adjusting its IBIT stake while cutting Ether and Solana ETF exposure, signals a broader risk-off shift among large allocators.

Macro conditions have compounded the pressure. Oil prices above $107 per barrel, rising Treasury yields with the 10-year near 4.63% and the 30-year above 5.12%, and new Fed Chair Kevin Warsh pricing out 2026 rate cuts have all contributed to a hostile environment for risk assets.

The Crypto Fear & Greed Index has plunged to 28, deep in “Fear” territory, down from a neutral 48 just days ago. Bitcoin now trades at $74,606, a 40.8% drawdown from its all-time high of $126,080 set in October 2025.

What Traders Should Watch Next

Post-liquidation price action typically hinges on whether spot buying absorbs the cascade. If open interest has meaningfully declined, it signals genuine deleveraging, which tends to stabilize markets. If open interest remains elevated despite the flush, a secondary liquidation wave becomes likely should price fail to reclaim the $77,000 level.

Funding rates are the key near-term indicator. A reset to neutral or negative funding would suggest the overleveraged long positioning has been cleared. Persistently positive funding rates, by contrast, would indicate more longs remain exposed to further downside.

The recent approval of Nasdaq Bitcoin index options trading has added new derivatives infrastructure to the market, giving institutional participants additional hedging tools. Whether that added liquidity dampens or amplifies future liquidation cascades remains an open question as May’s volatile stretch continues.

Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency and digital asset markets carry significant risk. Always do your own research before making decisions.