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# $113M Wiped Out as Traders Keep Buying the Dip That Never Comes
- URL: https://wire.fourthweb.ai/113m-wiped-out-as-traders-keep-buying-the-dip-that-never-comes/
- Published: 2026-07-26T16:52:20.000Z
- Updated: 2026-07-26T17:02:33.000Z
- Description: The liquidation wave isn't slowing down — it's accelerating as bulls keep betting on a bounce that hasn't come.
- Author: Travis Wright
- Tags: Real World Assets, Institutional Crypto, Bitcoin, Ethereum

**The liquidation wave isn't slowing down — it's accelerating as bulls keep betting on a bounce that hasn't come.**

### The Summary

- [Crypto markets liquidated $113M in derivatives positions in the latest 24-hour period](https://cryptobriefing.com/crypto-derivatives-see-113m-liquidations-in-24-hours-market-stress-rises/?ref=wire.fourthweb.ai), following a [$271M liquidation event just two days prior](https://cryptobriefing.com/crypto-271m-long-liquidations-24-hours/?ref=wire.fourthweb.ai) where longs accounted for $228.2M of the damage.
- [Bitcoin](https://wire.fourthweb.ai/tag/bitcoin/) and [Ethereum](https://wire.fourthweb.ai/tag/ethereum/) holders took the heaviest losses as leveraged positions got stopped out during volatility spikes.
- Market stress indicators suggest cautious sentiment is building, potentially capping Bitcoin's near-term price targets and shaking investor confidence.

### The Signal

Crypto derivatives markets just saw back-to-back liquidation events that wiped out nearly $400M in leveraged positions across 48 hours. [The first wave eliminated $271M](https://cryptobriefing.com/crypto-271m-long-liquidations-24-hours/?ref=wire.fourthweb.ai), with long positions representing 84% of the bloodbath. [The second hit $113M](https://cryptobriefing.com/crypto-derivatives-see-113m-liquidations-in-24-hours-market-stress-rises/?ref=wire.fourthweb.ai), confirming this wasn't a one-off flush but a structural shift in market dynamics.

The pattern is clear: traders keep positioning for upside, and the market keeps punishing them for it. Bitcoin and Ethereum bulls absorbed the majority of losses in both events, suggesting retail and mid-tier institutional players are still fighting the last war while price action tells a different story.

> "Long liquidations representing 84% of the wipeout signals a one-sided bet that the market ruthlessly exploited."

Here's what the liquidation cascade reveals:

- Leverage remains high despite recent volatility, meaning position sizing discipline hasn't caught up to market reality
- Bulls are getting repeatedly trapped at resistance levels, suggesting either stubborn conviction or poor risk management
- The two-day sequence implies coordinated volatility spikes designed to sweep liquidity before any sustained move

[Rising market stress](https://cryptobriefing.com/crypto-derivatives-see-113m-liquidations-in-24-hours-market-stress-rises/?ref=wire.fourthweb.ai) isn't just about the dollar figures. It's about sentiment calcification. When traders watch hundreds of millions evaporate in 48 hours, they don't rush back in with the same conviction. They reduce size, widen stops, or step aside entirely. That creates the liquidity vacuum that makes the next move even more violent.

The derivative markets are supposed to be where sophisticated players manage risk. Instead, they're becoming the shock absorber for spot market indecision, with leveraged traders subsidizing every 3% swing in either direction.

### The Implication

If you're trading crypto on leverage right now, the market is telling you something: your position size is wrong. The two-day liquidation sequence proves that volatility is outpacing risk models, and the usual resistance levels are being used as liquidity traps rather than reversal zones.

For builders and long-term holders, this is noise. But it's expensive noise that bleeds confidence from the marginal buyer. Watch funding rates and open interest over the next week. If leverage rebuilds quickly after this flush, expect another round of liquidations. If it stays compressed, we might finally get the directional move everyone's been waiting for.

### Sources

[Crypto Briefing](https://cryptobriefing.com/crypto-derivatives-see-113m-liquidations-in-24-hours-market-stress-rises/?ref=wire.fourthweb.ai)