Bybit CEO Ben Zhou disclosed that cryptocurrency market liquidations amounted to between $8-10 billion which exceeded the widely published $2 billion figure. During a 24-hour period Bybit processed $2.1 billion in liquidations which exceeded Coinglass’s total market figure.
Data Reporting Issues
Exchange APIs operated by Binance and OKX along with Bybit enforce one-second limits on liquidation reporting. The present technical limitation produces trading volume and market impact data lower than the actual values.
Industry Impact
Such a $10 billion dollar loss would become one of the largest recorded in crypto history surpassing both the Terra/Luna collapse and FTX failure. Bybit announced that it will release complete details about its liquidations for better market transparency.
Scale of Liquidations
The disclosure has revealed multiple fundamental problems in crypto, more specifically market data reporting. This in turn, creates doubts about the transparency and efficacy of the overall market. Furthermore, it emphasizes the importance for precise trading metrics in the crypto sector
