Recently, the recent crypto market correction has triggered massive liquidations in the market. As per data from Coinglass, more than $2.24 billion was liquidated from the crypto markets in 24 hours on Feb 3. 

Real Figures 5x Larger!

However, Bybit co-founder believes that the real figure might be five times larger. In a recent X post wrote that the real total liquidation is a lot more than $2 billion, with his estimation that it should be at least around $8-10 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.

He further noted that the differences in the crypto liquidation figures were likely caused by limitations in the application programming interfaces (API) of the cryptocurrency exchanges.

He noted that this caused platforms like CoinGlass to report Bybit’s liquidations as $333 million, rather than the actual $2.1 billion.”Going forward, Bybit will begin releasing all liquidation data. We are committed to transparency,” he added. 

A Global Trade War Imminent?

The increase in liquidation amounts comes after major price swings in key cryptocurrencies like Bitcoin and Ethereum, causing widespread sell-offs. As prices fall and margin calls increase, traders in long positions are compelled to liquidate, fueling a chain reaction of liquidations across exchanges.

Notably, the multibillion-dollar crypto market crash took place against the backdrop of increasing worries about a possible global trade war, which followed after President Donald Trump signed an executive order to introduce import tariffs on products from China, Canada, and Mexico, as per a White House statement on February 1.

Besides, after Zhou’s comments, the crypto community debated the accuracy of the reported figures, with some suggesting that past events like the COVID crash and the FTX collapse may have been underreported too.

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