Bitcoin drops 3% as long-liquidation cascade follows major DeFi exploit shock
Bitcoin slid about 3% as a leverage unwind hit crypto, with roughly $306.82 million in forced liquidations over the past 24 hours and longs making up about 81% of the wipeout. The selloff followed DeFi stress tied to a $292 million exploit and emergency freezes, keeping risk appetite fragile even after a strong prior week for spot Bitcoin ETF inflows.
1) What’s driving the move
Bitcoin is moving lower today as leveraged positioning unwinds across crypto markets. Over the last 24 hours, about $306.82 million in positions were forcibly liquidated, with roughly 81% of that coming from long bets—an air-pocket dynamic that often accelerates downside when prices slip through crowded levels. (spotedcrypto.com)
2) DeFi shock adds fuel to risk-off
Risk appetite also took a hit after fresh DeFi stress: a reported $292 million exploit triggered protocol-wide emergency freezes, adding a headline catalyst that can push traders to reduce exposure and pull liquidity. The combination of exploit-driven uncertainty and high leverage set up the conditions for a sharper-than-normal intraday drop in BTC. (spotedcrypto.com)
3) Why the drop matters even with ETF support
The decline is notable because flows into spot Bitcoin ETFs have recently been constructive, with the same market briefing citing nearly $1 billion in net weekly inflows. That tension—supportive longer-horizon allocation versus short-horizon leverage liquidations—can keep price action choppy and headline-sensitive in the near term. (spotedcrypto.com)