Avalanche OI Falls 10.94% as Long Liquidations Reach $5.56M
Avalanche derivatives are showing a clear leverage purge: total open interest dropped 10.9% in 24 hours to $428.9M, while 24-hour liquidations reached $5.9M. Long accounts absorbed $5.6M of that damage, versus just $301.9K for shorts. The immediate message is bearish for crowded positioning, but the liquidation imbalance also means a large part of the forced selling may already have occurred.
Recent market coverage has focused on Avalanche’s expanding tokenization and on-chain credit activity, but the derivatives tape is currently being driven more by deleveraging than by that constructive narrative.
Where the OI purge happened
Binance remains the largest tracked venue, holding 23.5% of AVAX open interest at $101.0M after an 11.98% daily contraction. Bybit held 18.2%, or $78.2M, with OI down 9.5%, while Gate represented 17.3%, or $74.3M, after the sharpest decline among the leading venues at 14.5%. OKX was smaller at 4.0% and still lost 9.7%.
The venue split matters because the decline was broad rather than isolated. Gate’s 4-hour OI change was already down 5.4%, compared with Binance at -1.1% and OKX at -0.7%. Bybit was the exception, adding 0.1% over four hours. That small rebound is not enough to offset the wider withdrawal of leverage, but it suggests some traders are beginning to rebuild exposure on selected venues instead of exiting uniformly.
Funding confirms defensive positioning
The funding rate map is tilted negative across several high-volume venues, consistent with pressure on long exposure. Binance was at -0.0% after rounding, Bybit at -0.0%, and Gate at -0.0%, while OKX was slightly positive at 0.0%. The standout negative reading was CoinEx at -0.1%, whereas Aster and WhiteBIT were positive at 0.0% after one-decimal rounding.
The broader signal is clearer in the average funding reading, which was negative, while the annualized basis stood at -24.6%. That combination says traders are not paying a premium to hold upside exposure. Yet the positioning data is not one-sided enough to confirm a fresh short build: account longs were 69.5%, while the aggregate taker split was nearly balanced at 50.0% long. In other words, passive accounts remain long, but active execution is no longer showing the same conviction.
Liquidations expose the crowd
The liquidation windows show how quickly the structure changed. In the latest hour, shorts lost only $2.3K versus $10.3 in longs. Over four hours, long liquidations rose to $57.3K while shorts were $2.4K. The 12-hour window was more mixed, with $71.7K in long liquidations and $119.6K in shorts, but the 24-hour total returned decisively to long-side stress.
The largest recorded long liquidation was $208.0K at $9.349, followed by $161.9K at $9.752 and $156.9K at $10.326. These levels map the downside zones where leverage was actually removed, rather than merely advertised in positioning ratios.
Verdict: AVAX remains in a post-purge, bearish-to-neutral setup while price is $10.393, OI is about $428.9M, and the market continues to carry 69.5% long accounts. The key downside reference is $9.752, with $9.349 as the deeper liquidation marker; a recovery above $10.326 while OI rebuilds beyond $429.7M would invalidate the bearish purge view, especially if Binance taker longs rise from 32.5%. Data as of 20:10 Beijing time on Oct 9, covering Binance, OKX, Bybit and other major venues.