Bybit CEO Exposes True Loss of Crypto Liquidations: $10B Estimated?!

The recent correction in the cryptocurrency market has led to massive liquidations, with over $2.24 billion wiped out in just 24 hours on February 3, according to Coinglass data.

However, Bybit’s co-founder suggests that the actual figure might be much higher, estimating that it could range from $8 billion to $10 billion, much more than the reported $2.24 billion.

Liquidation Estimates Might Shock You

In a recent post on X, Bybit co-founder Ben Zhou expressed concerns over the accuracy of liquidation data. He stated that the real total liquidation is likely much larger than the reported $2.24 billion.

“I am afraid that today real total liquidation is a lot more than $2B, by my estimation it should be at least around $8-10b. Bybit’s 24hr liquidation alone was $2.1 billion,” Zhou noted.

Zhou explained that the discrepancies in liquidation figures are likely due to limitations in the application programming interfaces (APIs) used by different exchanges. For example, platforms like CoinGlass reported Bybit’s liquidation figure as $333 million, which is far lower than the actual $2.1 billion.

“Going forward, Bybit will begin releasing all liquidation data. We are committed to transparency,” he added.

Is a Globe Trade War Coming?

The sharp increase in liquidations follows significant price swings in key cryptocurrencies such as Bitcoin and Ethereum, leading to widespread sell-offs. As prices fall and margin calls increase, traders with long positions are forced to liquidate, triggering a chain reaction of liquidations across exchanges.

This multi-billion-dollar market crash has also taken place amid growing concerns over a potential global trade war. On February 1, President Donald Trump signed an executive order to impose import tariffs on products from China, Canada, and Mexico. This move could further shake the global economy and contribute to the market’s volatility.

Is the Data Accurate?

Following Zhou’s comments, the crypto community has raised questions about the accuracy of reported liquidation figures. Some believe that past events, such as the COVID crash and the FTX collapse, may have also been underreported. As the industry faces these challenges, the call for greater transparency in reporting continues to grow.