A sudden 5% decline in Bitcoin's price, dropping from $69,450 to as low as $65,970 within 30 minutes on March 2 UTC, resulted in significant losses for traders with leveraged exposure to cryptocurrencies.

Data from Coinglass indicates that over $165 million in leveraged positions were liquidated, with the majority coming from Bitcoin and Ether long positions. Additionally, approximately $6 million in Dogecoin and $4 million in Solana positions were liquidated.

Concurrently, Bitcoin exchange-traded funds (ETFs) experienced a net outflow of $86 million, ending a four-day streak of positive inflows. BlackRock's ETF had the highest net inflow at $165.9 million, followed by Fidelity with $44 million.

However, Grayscale's GBTC saw $302 million in outflows, resulting in a net daily outflow of $85.7 million for all funds. During the Bitcoin flash crash, the value of Tether briefly wobbled around 1%, dropping from its $1 peg to $0.988, according to CoinGecko data.

It remains unclear whether this wobble was due to an error in certain data trackers' APIs or if the currency's value experienced a sudden fluctuation. Cointelegraph reached out to Tether for clarification but did not receive an immediate response.