A sharp surge in cryptocurrency prices wiped out a record $2.7 billion in short positions within 24 hours, according to data from CoinGlass. The forced closures amplified Bitcoin’s climb toward $70,000 and marked the largest wave of short liquidations in records dating back to 2021.
The squeeze unfolded rapidly as prices reversed higher.
The Drivers of This Activity
Bitcoin rose nearly 8% and briefly approached $70,000, levels last seen in early June. The move caught heavily leveraged short sellers off guard. Total crypto liquidations reached nearly $3 billion across more than 172,000 traders. Short positions accounted for roughly 92% of the total, or about $2.74 billion, while long liquidations amounted to only around $257 million.
More than $1 billion in Bitcoin short positions were liquidated in roughly one hour, with Bitcoin shorts totaling about $1.42 billion for the full day. Ethereum contributed approximately $1.13 billion and Solana around $105 million. The largest single liquidation reported was a $48.8 million Bitcoin position.
The scale of short liquidations exceeded the short-side figure from the October 2025 market crash, although that earlier event produced far larger overall liquidations.
Impact and Broader Context
The short squeeze accelerated the upward price move through forced buying as positions were closed. Such cascades can produce sharp, self-reinforcing rallies but are often viewed as fragile if not accompanied by sustained new demand.
The event highlights the elevated levels of leverage and one-sided positioning that had built up during the preceding period of weaker prices. Crypto-related stocks also rose in response to the improved sentiment and higher trading volumes.
Traders and analysts will monitor whether the liquidations clear overhanging supply or leave the market vulnerable to further volatility. Ongoing ETF flows, macroeconomic data and any additional policy developments remain key factors for the next phase of price action.