Bybit Faces Record $10M Bitcoin Short Liquidation

A $10 million BTC/USD short position was liquidated on Bybit as Bitcoin surged past $120,000. This marked a significant event on August 13, 2025, contributing to record global crypto liquidations totaling $5.01 billion across exchanges.

Bybit was the central exchange highlighted during the event. Ben Zhou, Bybit’s CEO, frequently discusses transparency in liquidation reporting, having committed to pushing all liquidation data. He stated, “Moving forward, Bybit will start to PUSH all liquidation data. We believe in transparency.” Arthur Hayes was also active, indicating institutional involvement.

Immediate effects included a record single-day liquidation reaching $5.01 billion, fueled mainly by short liquidations. Over 60 percent were attributed to the rapid rise in Bitcoin prices across multiple exchanges worldwide.

Financial implications include BlackRock’s IBIT ETF recording $359 million in inflows. August 8 saw $403 million of BTC-backed ETF shares bought, highlighting rising institutional interest and positioning Bitcoin as a crucial asset.

August 13, 2025, was noted as a record day with liquidations surpassing prior records. Increased ETF flows and institutional buying accentuated the event, with amplified leverage unwinds on BTC and ETH platforms.

Regulatory scrutiny over leverage trading is expected to intensify as institutional activity grows. Bybit’s push for transparent data reporting may prompt industry-wide changes, aiming to address risk concentrations amid growing macro-asset trading interests.