Over $361M in longs wiped out in 24 hours as crypto leverage gets a reality check

The event followed a $1.5 billion liquidation spike on June 7, when Bitcoin fell below $62,000. The current cascade was smaller in magnitude but showed a similar pattern: price breaks a nearby support, funding rates flip negative, and stop-losses get triggered in clusters. Bitcoin (BTC) profile data shows that funding rates on Binance BTC/USDT perps turned negative for the first time in eight days during the flush, pointing to a shift in positioning.

For traders watching the derivatives market, real-time liquidation data from Coinglass is critical infrastructure. Monitoring open interest and funding rates across perpetuals reveals where the market's pressure points sit. A cluster of liquidations at $60,000 would suggest that level is the next major support, while a recovery above $64,500 on declining open interest would indicate that leveraged bulls have been cleaned out and the base is more stable.

The June 7 liquidation cascade, which wiped out $1.5 billion in a single day, remains the largest this month. Tuesday's event showed that the market is still sensitive to leverage, even at lower volumes. The next big test will come with Friday's $3.8 billion Bitcoin and Ethereum options expiry, a scheduled event that could amplify volatility. For now, the funding rate has turned negative on most majors, a sign that shorts are paying to stay open and that a squeeze could be brewing if spot demand returns.