Shiba Inu Shock: $503M Liquidated as Open Interest Crashes 8%

• Shiba Inu open interest drops 8% amid sharp selloff
• Over $503 million liquidated as long traders suffer
• Futures positions unwind quickly after failed breakout attempt

Shiba Inu’s derivatives market recorded a sharp contraction after sentiment flipped bearish within hours. Open interest in SHIB futures fell 8.59% over the past 24 hours, according to CoinGlass data released on Feb. 28. The decline followed a short lived breakout that failed to hold momentum.

As prices reversed, traders rapidly reduced exposure. Consequently, total open interest dropped to about 10.59 trillion SHIB tokens. That pullback reflects a broad reduction in active futures positions as selling pressure intensified.

At the same time, the wider crypto market witnessed heavy liquidations. More than $503 million in futures bets were wiped out during the same period. That figure marked an 84% increase compared to the previous day. Long traders suffered the largest share of losses, accounting for approximately $362 million after positioning for further upside. Meanwhile, SHIB’s spot price mirrored the weakness seen in derivatives.

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Open Interest Decline Signals Rapid Position Unwinding

When open interest falls alongside price, traders often close positions instead of opening new ones. This pattern suggests a retreat from leverage rather than aggressive short building. In SHIB’s case, the synchronized drop in price and open interest points to swift position unwinding.

Over the last 24 hours, Shiba Inu declined 5.28% and traded at $0.000005536, based on CoinMarketCap data. The failed breakout attempt weakened confidence and accelerated exits from the futures market. Hence, leveraged traders moved quickly to limit exposure.

Additionally, the contraction in open interest indicates that speculative appetite cooled significantly. Market participants appeared more focused on risk control than fresh directional bets.

Liquidations Surge as Long Traders Take Heavy Losses

Liquidation data further highlights the intensity of the reversal. Of the $503 million liquidated across crypto markets, about $362 million came from long positions. Many traders had anticipated continued gains before the sudden downturn.

Exchange level figures also showed uneven participation. Coinbase recorded relatively limited SHIB futures exposure, with only 15.46 million tokens staked on its platform. That lower activity suggests cautious engagement among its users.

Broader market volatility added to the pressure. As uncertainty persists, leveraged positions remain vulnerable to rapid sentiment shifts. Shiba Inu’s latest move underscores how quickly derivatives markets can contract when optimism fades and risk management takes priority.

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