A $20 million Shiba Inu liquidation wave hit traders within 24 hours, with bullish positions taking the larger loss even as bets on gains continued to outnumber bearish wagers. The Shiba Inu team urged caution, pointing to borrowed money as a driver of short-term price swings.
Key takeaways
SHIB longs lost $12.9 million; shorts lost roughly $7 million.
Bullish positions outnumbered bearish bets by 2.71 to 1.
Exchange deposits exceeded withdrawals by about 92.07 billion SHIB.
Shiba Inu liquidation wave hits both sides
Long traders absorbed $12.9 million in liquidations, while shorts lost approximately $7 million . Both sides suffered, but bullish positions accounted for about two-thirds of the damage.
The losses did not eliminate the market’s bullish tilt: bets on rising SHIB prices still exceeded bearish positions by 2.71 to 1 . The team’s post paired its caution with a call for more bulls and token burns.
Exchange inflows add a separate selling signal
Exchanges received about 92.07 billion SHIB in net deposits over 24 hours. The team put incoming transfers at 324.28 billion tokens, against withdrawals of 232.21 billion.
CryptoQuant data corroborated those flows, recording net deposits of 92.0678 billion SHIB, up 0.77%. Inflows rose 1%, while outflows increased 1.13% over the same period.
Tokens held on exchanges are immediately available for sale, making net inflows an indicator of selling readiness, the team explained. Tokens held in self-custody require a transfer before they can reach an exchange order book.
Compared to the single-day whale transfer of 1.04 trillion SHIB to exchanges seen in June, this inflow was smaller in scale. CryptoQuant data showed exchange reserves at 86.2525 trillion SHIB, a 0.11% increase, even as their dollar value dropped 2.9% to roughly $418.32 million.
Futures dominate as SHIB’s longer-term weakness persists
Futures desks, rather than spot buyers, are setting the tone for SHIB trading. The token has lost roughly half its value over the past year.
On-chain data also show Shibarium usage collapsing over that period, alongside thin organic demand.
Team points to borrowing-driven price swings
The team’s warning around the Shiba Inu liquidation wave centered on leverage: borrowed funds, rather than outright token purchases, are driving short-term moves. It explained that even small price changes can produce outsized liquidations.
The same post combined that warning with an appeal to the community: “Please take care of your trades. Bulls and more burns we need!”
Article produced with the assistance of artificial intelligence and reviewed by the editorial team.
