Crypto rebound leaves $345 million of leveraged positions liquidated as Zcash leads gains
CoinGlass data cited by multiple market reports show short positions absorbed most forced closures, underscoring how leverage can amplify a move after the Fed decision.
By The Third AnglePublished 5 min read
CoinGlass data cited in market coverage showed about $345 million in crypto liquidations over 24 hours. Photo: Nick Chong / Unsplash · Unsplash License
A sharp move in a leveraged market
About $345 million in cryptocurrency positions were forcibly closed over 24 hours as bitcoin and major tokens recovered after Wednesday’s Federal Reserve rate hike, according to CoinGlass data cited by CoinDesk. A separate CoinGlass-based market report put the total near $346 million, providing a close independent check on the scale of the liquidation wave.
Short positions accounted for most of the damage in the CoinDesk tally: roughly $208 million versus $137 million in longs. Ether and bitcoin led the dollar value of liquidations, while Zcash alone accounted for about $56 million as its price rose more than 17% to around $1,358.
Liquidation is mechanical, not voluntary. When collateral no longer covers a leveraged position, an exchange closes it, which can add buying or selling pressure to an already moving market. Liquidations are not the same as investor demand. They show forced exits and positioning stress.
Why Zcash stood out
Zcash’s move was far larger than the gains in most major tokens. CoinDesk linked the rally partly to comments from Paradigm co-founder Matt Huang, who described Zcash as a privacy complement to bitcoin and disclosed that the investment firm owns ZEC. That creates a plausible narrative, but it does not prove that the comments caused the price move.
The broader market also advanced as traders assessed the Fed’s quarter-point hike and its projection for limited additional tightening. Bitcoin held above $76,000, while Solana, BNB, ether and other large tokens posted smaller gains. The same macro backdrop can support a rebound and still leave leverage vulnerable to the next data surprise.
Zcash’s concentrated move matters because thin liquidity and derivatives positioning can magnify both directions. A short squeeze can lift price quickly, but it can also reverse when forced buying ends or when new shorts enter at higher levels.
The risk signal for traders
The liquidation figures are a snapshot, not a forecast. CoinGlass aggregates exchange-reported data, and totals can change as venues update their records or as positions are opened and closed. The numbers also do not reveal each trader’s full portfolio, hedge or ability to absorb a loss.
For market participants, the practical signal is leverage sensitivity. Funding rates, open interest, liquidation clusters and spot volume can help explain whether a move is being led by new buying or by derivatives unwinding. None of those metrics makes a volatile token suitable for a particular investor.
The next evidence to watch is whether open interest rebuilds while prices hold, or whether the rebound fades as forced flows disappear. A squeeze can move markets without changing fundamentals. Crypto derivatives remain high-risk, and readers should treat liquidation data as context rather than a trading instruction.
