Ethereum News Update: Bitcoin Price Swings Trigger $2.95B Wave of Crypto Liquidations

The cryptocurrency sector underwent a dramatic upheaval between October 27 and 28, 2025, as rapid price fluctuations led to the liquidation of more than $2.95 billion in leveraged trades within just one hour. This turbulence was primarily fueled by sudden movements in

(BTC) and (ETH). This period stood out as one of the most unstable of the year, with Bitcoin before pulling back, which set off a wave of short position liquidations and heightened overall market anxiety.

On October 27, Bitcoin’s climb above $116,000 alone wiped out $19.15 million in short bets, with most of the action taking place on Binance. Open interest jumped from $33 billion to over $36 billion, and with 40% of positions being shorts, bearish traders faced significant risk. Data from

indicates that if Bitcoin breaks above $110,000, as much as $1.696 billion in short positions could be liquidated, while a dip below $106,000 could see $1.3 billion in long positions erased. The volatility index hit 1.97%, its highest level in six months, highlighting the vulnerability of leveraged trades.

Ethereum was not spared from the turmoil, with global liquidations reaching $522 million in a single day, including a $6.09 million position closed on Hyperliquid, as reported by

. At the same time, , a significant holder of Ethereum, sold $40 million worth of to finance a stock buyback, aiming to reduce its 30% discount to net asset value (NAV). This decision sparked debate, with some warning it could put downward pressure on ETH’s price.

Traditional markets also saw notable corporate maneuvers.

finalized a $138 million stock repurchase as part of its 2022 buyback initiative, while bought back $32.6 million in shares. These actions stood in stark contrast to the crypto market’s volatility, where both leveraged investors and institutions contended with rapidly changing liquidity conditions.

Yet, not all news was encouraging.

, the oldest cryptocurrency exchange now under Chapter 15 bankruptcy, postponed creditor repayments for another year, moving the deadline to October 2026. The trustee pointed to unfinished procedures as the main reason, leaving many creditors still waiting for their funds more than a decade after the exchange’s 2014 collapse.

Institutional activity also made headlines. Bitmain, a major Bitcoin mining company, reportedly

(worth $135 million) from FalconX, reflecting growing institutional interest in Ethereum. Meanwhile, revealed that retail investors reduced their exposure ahead of the $1.5 billion “Red Monday” liquidation event, indicating a heightened awareness of market risks.