Bitcoin's sharp reversal over the weekend inflicted heavy losses on traders who had piled into long positions with excessive leverage, according to data compiled by Woofun AI. The prior week's rally had initially caught short sellers off guard, but Sunday's dramatic shift left bullish traders as the primary casualties.

Within a four-hour window, liquidations on BTC reached $38.66 million, while the 24-hour total climbed to $55.82 million. At the time, Bitcoin's price had dropped to $76,088, down 1.8% from the previous day, after briefly recovering to around $80,000 before settling back to $77,300.

Data from Woofun AI indicates that shifts in open interest suggest investors are deleveraging, with overall risk exposure narrowing. Liquidation activity was heavily concentrated, with Binance accounting for $65.02 million in liquidations over the four-hour stretch, of which long positions made up a staggering $58.64 million. The largest single liquidation order in the 24-hour period was a $11.72 million ETHUSDT trade on Binance, highlighting that the Ethereum market is also under considerable strain.

From a spot ETF perspective, figures from August 23 reflect weakening bullish sentiment and a decline in open contracts. A fresh uptrend may require a rebound in leverage ratios or an uptick in funding activity. Monday's reopening of the ETF channel will be a pivotal test for spot demand, as the market remains in a phase of risk clearance.