Definition. The total volume of USD-denominated liquidations in futures markets, presented in three traces: long liquidations (green, plotted positive), short liquidations (red, displayed as negative for visual symmetry), and the combined total of both sides (orange; hidden by default). Price is shown in grey for reference.

Technical. Long and short liquidation volumes are aggregated over rolling 24-hour windows from hourly data:

• Long Liquidations = sum(hourly long liquidations, 24) (green columns)
• Short Liquidations = -1 x sum(hourly short liquidations, 24) (red columns)
• Total Liquidations = |Longs| + |Shorts| (orange)

Interpretation. Liquidations are forced closures of leveraged positions whose margin has been exhausted, so this chart maps where and how violently leverage is being flushed from the market. Clusters of long liquidations accompany sharp downside moves, and large prints often mark capitulation-style cascades in which forced selling begets further selling; clusters of short liquidations mark squeezes, where rallies force bears to buy back exposure and mechanically amplify the move. The overall magnitude of liquidation volume gauges how leveraged the market was going into a move — heavy two-sided liquidation activity is characteristic of choppy, over-leveraged regimes, while quiet periods suggest positioning has reset. Liquidation spikes paired with declining open interest confirm genuine deleveraging events.

Notes. Built from Futures Long Liquidations and Futures Short Liquidations. Open interest context is available via Futures Open Interest and the Futures Open Interest Leverage Ratio.