The crypto world is up for a toss over a sudden wave of liquidation. In just 24 hours more than $287 million worth of positions have been liquidated which showcases the volatility of the crypto market and the increased risks of using positions.

This sudden wave of liquidation first took its toll on major crypto exchanges as OKX and Binance reported $120.37 million and $132.55 million liquidations respectively. The two most affected cryptocurrencies were Ethereum and Bitcoin as $66.52 million in Ethereum positions (about 25,390 ETH) and $80 million worth of Bitcoin positions (equivalent to 1,180 BTC) were wiped out.

However, this wasn't an isolated incident of a liquidation wave as the crypto market was facing severe volatility in the last few weeks due to regulatory issues and macroeconomic factors. Over $292 million in liquidations happened in the last 24 hours, of which long positions made up 77.91%

The largest single liquidation order occurred on OKX, where a $6.55 million ETH-USDT positions were eliminated in seconds. This particular incident highlights the extreme risks traders face when using high leverage in volatile markets. Crypto analyst Miles Deutscher, called it a double-edged sword as it can lead to severe losses while amplifying gains.

However, some analysts like the founder of MN Trading Michaël van de Poppe are hopeful about the crypto market’s prospects in the long run. According to Poppe investors must remember the cyclical nature of the crypto market. He further stated that liquidation events like this “create opportunities for those who manage their risk properly."