Shiba Inu Team Warns on Risk After SHIB Sees $20M in Liquidations

Following a $20 million wave of liquidations in SHIB over a 24-hour span, the Shiba Inu team has advised traders to exercise caution. Long positions accounted for $12.9 million of that amount.

In the same message, the team called for additional bullish participants and more token burns. Despite the flush, bullish bets continue to outnumber bearish ones by a ratio of 2.71 to 1, leaving long positions in SHIB vulnerable to another wave of forced closures.

Why the Shiba Inu Team’s Caution Aligns With Futures Market Data

The team supported its warning by pointing to futures market figures. These derivative instruments allow traders to wager on SHIB's price, often using leveraged capital.

According to the Shiba Inu team, futures trading volume reached $49.3 million during the same period.

In comparison, spot market turnover — which involves the direct purchase and sale of the token — amounted to just $10.8 million. That puts derivatives activity at roughly 4.5 times the level of spot trading.

Please take care of your trades. Bulls and more burns we need!

Shiba Inu wrote

In practice, borrowed capital rather than outright token buying drives short-term price movements. As a result, even minor price shifts can lead to disproportionately large liquidations.

Short positions suffered about $7 million in losses, meaning the liquidation wave affected both sides of the market. However, longs bore approximately two-thirds of the damage.

A heavily skewed bullish bias carries risks in both directions. If the price falls further, it could trigger additional long liquidations, and each forced sale adds to the selling momentum.

The call for more bulls is not new. It mirrors the team's previous community push for bullish sentiment from August.

92 Billion SHIB Moves to Exchange Wallets

Spot market flows provide another indicator. The Shiba Inu team reports that exchanges received 324.28 billion SHIB over 24 hours, while 232.21 billion tokens left.

👉 92.0678 billion SHIB flowed into exchanges on a net basis over the past 24 hours.

👉 SHIB exchange inflows totaled 324.281 billion tokens, while outflows reached 232.2131 billion.

Exchange net flow is a primary gauge of whether holders are staging assets for sale or moving…

— Shiba Inu (@ShibainuCoin) October 29, 2026

The net result is an inflow of roughly 92.07 billion tokens. Tokens held on trading platforms can be placed on the order book instantly.

By contrast, coins kept in self-custody must be transferred before they can be sold. The team explains that net inflows thus serve as a measure of readiness to sell.

That supply arrives at a challenging moment for the token. SHIB has lost roughly half its value over the past year.

Nonetheless, the inflow is modest compared with June, when whales moved 1.04 trillion SHIB to exchanges in a single day. The next flow data will reveal whether these tokens are sold or simply remain on exchange wallets.

For now, futures desks rather than spot buyers are setting the tone, which helps explain the Shiba Inu team's cautious stance. That fits a year of weak organic demand, with on-chain data showing a collapse in Shibarium usage.