Crypto traders betting on a sustained bitcoin rally got a stark reminder of headline risk Friday morning as Donald Trump’s latest tariff threats rattled markets. Over $300 million in leveraged derivative positions were liquidated across centralized exchanges within just four hours, according to CoinGlass data, as prices plunged sharply.
Bitcoin (BTC) slipped 3% from near record highs, with long positions bearing the brunt of the sell-off. BTC longs alone accounted for $107 million of the liquidations. Ethereum’s Ether (ETH) followed closely behind with nearly $87 million in liquidated longs. Other tokens including Solana (SOL), Dogecoin (DOGE), and SUI faced liquidations ranging between $10 million and $18 million each.
Well-known crypto trader Skew noted on X, “Nice aggregate flush of long leverage and de-risk selling from spot — all driven by headlines once again.”
The sell-off was triggered after Trump announced plans for a 50% tariff on European Union imports starting June 1, alongside a 25% tariff on iPhones made outside the U.S. This escalation in trade tensions stoked fears of a renewed trade war, prompting a wave of risk-off moves.
As a result, bitcoin and major altcoins such as Ether, XRP, and Cardano fell between 3% and 4%. Smaller-cap tokens like Uniswap and SUI took even harder hits, dropping 5% to 7% within 24 hours.
Notably, crypto trader James Wynn—who recently made headlines for opening a $1.1 billion BTC long position with 40x leverage on the Hyperliquid exchange—saw his massive bet move underwater. Wynn currently faces $7.5 million in unrealized losses, and his position is at risk of liquidation if bitcoin falls to $102,000, according to a screenshot shared on X.
The wave of long liquidations comes amid a curious recent trend toward increased short positioning in bitcoin derivatives, despite BTC’s near-record prices, highlighting growing market caution.
