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On Monday, Bybit’s CEO Ben Zhou suggested that the recent crypto market correction might have resulted in the liquidation of up to $10 billion in capital, a figure that far exceeds previous estimates.
According to CoinTelegraph, this assessment came after more than $2.24 billion was liquidated from the crypto markets within a 24-hour period on February 3, as reported by CoinGlass. Zhou indicated that Bybit’s own liquidations accounted for $2.1 billion of that total.
Zhou expressed concerns that the actual total liquidations could be significantly higher than reported. "I am afraid that today’s real total liquidation is a lot more than $2 billion, by my estimation, it should be at least around $8 billion -10 billion," he stated in a social media post on February 3. The CEO’s comments highlight the volatility and risks present in the cryptocurrency market, especially during periods of economic uncertainty.
The massive liquidation event coincides with heightened macroeconomic tensions following President Donald Trump’s decision to impose import tariffs on goods from China, Canada, and Mexico. The executive order, signed on February 1, has sparked fears of a global trade war, which has had a knock-on effect on various financial markets, including cryptocurrencies.
Discrepancies in reported liquidation figures have been attributed to the application programming interface (API) limitations of cryptocurrency exchanges. Zhou explained that these limitations prevent accurate real-time reporting of liquidation data, leading to underreported figures by platforms like CoinGlass. In response, Zhou announced that Bybit plans to push all liquidation data in the interest of transparency.
The liquidation event has impacted a significant number of traders, with over 730,000 traders caught in the turmoil. CoinGlass data revealed that the largest single liquidation order occurred on the Binance exchange, involving an ETH/BTC trading pair valued at $25.6 million.
Despite the widespread losses, some traders have capitalized on the market correction, with one particular trader earning nearly $16 million on a 50x leveraged short position on February 2, betting against Ether’s price.
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