Crypto Liquidations Explained: Why Ethereum Was Hit Harder Than Bitcoin in the $1.19B Flush

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Why did Ethereum suffer heavier liquidations than Bitcoin in the $1.19B crypto selloff? Explore leverage, liquidity and market risk.
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A $1.19 billion crypto liquidation event on October 8–9 wiped out heavily leveraged positions, with Ethereum recording $356 million in liquidations compared with Bitcoin’s $298 million. Adjusted for market capitalization, Ether’s liquidation intensity was roughly six times higher. This article examines how leverage, volatility, funding rates, open interest, and macroeconomic shocks combined to trigger forced selling, while explaining why liquidation volume does not equal investor losses.