SHIB Positions Worth About $20 Million Liquidated in 24 Hours as Token Team Issues Warning

Key Facts

SHIB positions worth about $20 million were liquidated over 24 hours, according to Coinotag. Long positions took the biggest hit, at $12.9 million, compared with about $7 million in short positions. This derivatives-market activity coincided with a sharp daily drop in SHIB on October 29, when it closed at $0.00000463, down 6.84% from the previous day, according to Investing.com data. The following day, the price rose 1.73% to close at $0.00000471. The official Shiba Inu account also urged traders to exercise caution in a post dated October 29, saying: "Be careful with your trades. We need more buyers and more burns!" These events place the liquidations alongside the price decline and public warning, without establishing that one caused another.

Liquidations totaled about $12.9 million in long positions and $7 million in short positions over the same 24-hour window, according to Coinotag. That means the value of liquidated long positions was higher, while affected short positions remained a material part of the total. The figures describe positions forcibly closed in the derivatives market, while the price change measures the token's performance in the trading market during the day. On October 28, before the decline, SHIB had closed at $0.00000497 after rising 1.22%, according to Investing.com. It then closed at $0.00000463 on October 29 before recovering to $0.00000471 on October 30; these comparisons alone do not identify the causes of the liquidations or price movement.

Trading data cited by Coinotag showed SHIB futures volume of $49.3 million over 24 hours, compared with $10.8 million in spot trading. The figures measure activity in two different markets—futures and spot—with higher volume in futures during the period cited. The comparison provides context for derivatives activity surrounding the liquidations, but does not establish whether the use of leverage led to the forced closing of positions. Nor does it prove that traders took a uniform direction; aggregate trading value alone does not show how positions were distributed or what stance each trader took. These figures remain separate from the token's daily closing-price movement, which recorded a decline on October 29 and a rise on October 30.

The warning posted by the official Shiba Inu account on October 29 called for more buyers and burns, according to BeInCrypto. The phrase "We need more buyers and more burns" appeared in a brief message advising traders to be cautious with their trades. The message takes on added context from SHIB's daily decline on the same date, though it did not explain the price movement or the liquidations. The available information also gives no figure for the amount of tokens burned or the number of buyers, and does not directly link the team's appeal to market flows. The post therefore remains a public statement by the team about caution and the project's needs, issued alongside that day's trading.

SHIB's moves came amid wider turbulence in the cryptocurrency market following a security incident involving Binance. The Associated Press said the platform temporarily suspended deposits and withdrawals during security checks, and that Bitcoin fell 3.2% late Thursday, October 29, to below $79,000. In an update posted on October 30, Binance put the incident's total impact at about $6.3 billion and said it had frozen about $3 billion in affected assets on-chain. These developments provide context for market conditions at the time, but do not identify the cause of SHIB liquidations or how much they were connected to the incident. Binance also said user funds were safe and that it would cover losses through the SAFU Fund and company funds, and reported temporarily suspending deposits and withdrawals during the checks.

In an update published by AP on the morning of October 30, Binance said deposits were unaffected, while withdrawals remained suspended and were expected to resume within a day or two. The platform said it would publish a detailed technical review after the investigation and fact-checking were complete, and also planned to publish an updated proof of reserves after remediation was complete. These are the next steps the company announced regarding the incident; the update did not give a specific date for publishing the review or proof of reserves. SHIB, meanwhile, recorded a daily rise on October 30 after falling the previous day, according to Investing.com data. None of the updates specified a later date relating to SHIB trading or liquidations.