The main reason is likely caused by the traders' selection of a different triggering price to trigger the stop loss. 

• Liquidation is triggered by Mark Price (Yellow Box) on Bybit
• On the other hand, Traders are given the option to select the triggering price (The default option is Last Traded Price) for their stop loss. 
• It is entirely possible for the Mark Price to trigger the position's liquidation price first before the Last Traded Price (Red Box) can trigger the stop loss.  

Therefore, depending on trading strategies, Bybit traders are given the option to select the type of triggering price to trigger their stop loss. 

• Last Traded Price (Default option) = Represents the platform's latest trading prices when executing Buy Long or Sell Shorts orders placed by traders. 
• Index Price = Represents the market consensus price of the underlying asset. It's derived from a weighted average of multiple spot exchange quotes, adjusted by data usability and weight adjustment factors.
• Mark Price = Used to trigger liquidation

To understand some of the benefits and drawbacks of using each triggering price to trigger your stop loss, please refer to the article: What are the pros and cons of using LTP or Mark Price to trigger your conditional orders?

How to check which triggering price was selected to trigger your stop loss? 

Step 1: Go into your Order History

Step 2: Select the correct trading pair

Step 3: Check the trigger price column

• Last = Last Traded Price
• Mark = Mark Price
• Index = Index Price

Lastly, why was the stop loss recorded as canceled? 

In the event of liquidation, the system will cancel all active/conditional/take profit/stop loss orders and reset your Positions tab. Click here to find out more about the liquidation process.