Bitcoin knocks out 123,200 traders: the drama of massive liquidations after $3,000 movements

December 17 marked a particularly turbulent day in the cryptocurrency markets. In just two hours, Bitcoin experienced a series of extreme swings that left over 123,000 traders with their positions liquidated. The culprit: two consecutive moves of approximately $3,000 each—first a devastating bullish push and then an equally brutal fall.

Liquidations totaling nearly $400 million in 24 hours

The numbers tell the full story. The extreme volatility event resulted in total liquidations exceeding $400 million in the past day. Of that total, approximately $340 million occurred in just the last 12 hours, and about $310 million in the 4 hours prior to the event, according to CoinGlass data. Bitcoin in particular reported $108 million in liquidations during a four-hour period.

The distribution of these liquidations was uneven: $75 million came from short positions and $32 million from long positions, indicating an initial short-squeeze followed by a strong long-squeeze that trapped buyers trying to capitalize on the rebound.

The scenario: two long candles of pure volatility

According to available price analysis, Bitcoin started its move around 9:00 a.m. EST from $87,100. It then experienced an aggressive push that took it to $90,300 in just 30 minutes—a movement of $3,300 that liquidated $106 million in short positions. This is what traders call a classic short-squeeze.

But the story didn’t end there. In the following 45 minutes, Bitcoin gave back all those gains and more, falling $3,400 to touch $87,200, wiping out $52 million in long positions. The long candles recorded during this period reflect the magnitude of the moves and the total confusion in the market.

Ethereum experienced similar patterns, though with a predominance of liquidations on the long-squeeze side.

Algorithmic manipulation: reality or theory?

Multiple market analysts noticed the suspicious timing of the event. The move occurred exactly at 10:00 a.m. EST, coinciding with the opening of the traditional U.S. markets. Analysts like zerohedge have theorized about a “10am slam algorithm” that operates repeatedly during these time windows, suggesting coordinated pump-and-dump patterns.

Bull Theory was particularly direct in its conclusion: “Insane manipulation level in crypto,” highlighting the precise timing and coordination of both movements.

Broader context: ETF outflows and Wall Street pressure

Meanwhile, Bitcoin spot ETFs experienced net outflows of ( million on December 16, led by BlackRock’s IBIT. This data suggests that institutional operators might be reducing exposure or repositioning, which coincides temporarily with the observed volatility.

Bitcoin is currently trading around $91,510 USD, reflecting a partial recovery from the event’s lows, though it still exhibits significant fluctuations that demonstrate the fragility of market sentiment.