The Biggest Crypto
Liquidations in History
Crypto's 24/7 leverage markets have produced some of the most dramatic forced selling events in financial history. These are the days the liquidation engines ran without mercy.
Note: liquidation figures come from public exchange data and industry trackers (Coinglass, etc.). Actual totals vary by source and methodology. Historical data is approximate.
March 12–13, 2020 — "Black Thursday"
Estimated liquidations: ~$1B+ in 24 hours (BitMEX alone)
On March 12, 2020, Bitcoin dropped roughly 50% in a single day — from approximately $7,900 to under $4,000 — as global markets collapsed at the start of the COVID-19 pandemic. BitMEX, then the dominant derivatives exchange, processed over $700 million in liquidations in a single hour at the peak. Total across exchanges exceeded $1 billion in the 24-hour period.
The crash was compounded by BitMEX's own engine: as liquidations triggered further selling, the cascade drove prices lower, which triggered more liquidations. BitMEX briefly went offline during the most intense selling — a decision that remains controversial.
May 19, 2021 — "Bloody Wednesday"
Estimated liquidations: ~$8–10B in 24 hours
Bitcoin fell from approximately $43,000 to under $30,000 intraday on May 19, 2021. The trigger: a combination of Chinese mining crackdown news and a general deleveraging. Coinglass (formerly Bybt) recorded approximately $8 billion in liquidations in that 24-hour period — though some estimates reached $10 billion when counting smaller exchanges.
This was significant because the crypto market had grown substantially since 2020. More capital, more leverage, more liquidations when the cascade started.
May 2022 — The LUNA / UST Collapse
Estimated total losses: $40B+ in market cap; liquidations cascaded over ~5 days
The collapse of TerraUSD (UST) and its sister token LUNA in May 2022 was not a single liquidation event but a sustained collapse over approximately five days. UST lost its dollar peg on May 9, 2022. LUNA, once a top-10 cryptocurrency with a market cap above $40 billion, went to near zero within days.
The mechanics: UST was an algorithmic stablecoin backed by LUNA. As UST depegged, the protocol minted more LUNA to defend the peg, hyperinflating LUNA's supply and destroying its value. Leveraged positions across the ecosystem were liquidated as collateral values collapsed. Three Arrows Capital (3AC), which held significant LUNA exposure, was subsequently liquidated in June 2022 — one of the largest hedge fund failures in crypto history.
November 2022 — The FTX Collapse
Estimated customer losses: ~$8B; cascading liquidations across the industry
The collapse of FTX in November 2022 was less a liquidation event than a bankruptcy, but it triggered liquidations across the ecosystem. FTX, at the time the second-largest crypto exchange by volume, revealed a shortfall of approximately $8 billion in customer funds.
FTT (FTX's exchange token) lost over 90% of its value in days as Binance announced it would liquidate its FTT holdings, triggering a bank run on FTX withdrawals. Bitcoin fell from approximately $21,000 to under $16,000 during the collapse. Genesis, BlockFi, and several other firms with FTX exposure subsequently halted withdrawals or filed for bankruptcy.
What These Events Have in Common
- → Leverage cascades. One large liquidation reduces the price, triggering the next one. No circuit breakers.
- → Contagion. In connected markets, one failure spreads. 3AC's exposure to LUNA led to its own failure, which affected lenders, which affected customers.
- → 24/7 markets. The worst moves often happen at night or over weekends, when liquidity is lowest and retail traders are asleep.
- → Opacity. In most cases, the full picture was only visible after the fact.
// For the liquidated
Satirical merch for those who lived through it and still came back. Because what else are you going to do.
Browse the shop →// Related reading