The crypto market has witnessed a wave of liquidations totaling $652 million in leveraged long and short positions, leaving Aguila Trades—a well known leveraged crypto perpetual trading entity—with a $40 million loss, according to Lookonchain.
The liquidation represents its fifth major loss for Aguila Trades after having taken an infringing exposure of beyond $400 million, repetition of a high-risk play gone against expectation.
Data from Hyperdash, an analytical platform for Hyperliquid perpetual DEX, shows that Aguila Trades closed their last BTC long on August 1 while taking massive losses. Its wallet now merely has a balance of $85k, which was over $30 million on July 14.
The collapse follows a sharp downturn in the crypto market, where overleveraged longs were flushed out during a brutal correction. Over the past 24 hours, the total crypto market cap dropped 6.9% to $3.83 trillion. Bitcoin fell 3.3%, while Ethereum tumbled to 6.5%—as per CoinMarketCap data.
Most top 10 coins posted losses, dragging traders deep into the red. Aguila’s exit comes after it recently trimmed positions to avoid earlier liquidations. However, that didn’t stop the collapse.
Liquidations Surge Across the Market
According to Coinglass data, a cryptocurrency data platform, more than $652 million in crypto positions were liquidated in a single day, and 165,000 traders faced forced closures. Ethereum was leading, having $4.88 million in liquidations, followed closely by Bitcoin at $3.95 million. Longs took the heaviest hit, making up over 90% of all liquidations.
Moreover, Binance logged the single largest liquidation, a $13.79 million ETHUSD futures trade. That highlights just how extreme margin use has become. Hence, the heavy use of leverage continues to amplify market moves. These forced closures may now reset the market or expose deeper instability.
This event has prompted retail and pro traders to reassess their risk management protocols, potentially leading to better risk controls in the crypto derivatives market.
Also Read: Ethereum Slides 6% as Traders Dump Near $4K Resistance
