Crypto Rally Triggers $718M Short Liquidation Event

More than $718 million in short positions were wiped out across the crypto market in the past 24 hours. Marking the largest short liquidation event since October’s market crash, according to liquidation and derivatives data.

The move coincided with sharp upside momentum in Bitcoin and Ethereum. Therefore triggering forced closures across major exchanges as prices broke through key resistance levels.

A Short-Heavy Market Gets Forced Out

Bitcoin accounted for roughly $402 million in short liquidations. Moreover, Ethereum followed with approximately $255 million, making them the primary contributors to the event.

However, several altcoins, including Solana, XRP, and Dogecoin, also recorded notable short-side liquidations. Which pointed to broad market exposure rather than a single-asset squeeze.

Additionally, the data shows that the heaviest liquidation volumes occurred on Bybit, Binance, and Hyperliquid. With multiple venues reporting short liquidations as the dominant aspect of these forced exits.

Furthermore, over 146,000 traders were liquidated during the 24-hour window. With the largest single order exceeding $34 million on a BTC-USDT pair.

Why Shorts Were Trapped

In the days leading up to the move, derivatives data showed a steady buildup in open interest. Reflecting growing leverage as traders positioned themselves for downside continuation.

When Bitcoin and Ethereum broke above nearby resistance, open interest dropped sharply on shorter timeframes. While longer-term measures remained elevated, indicating rotation rather than full deleveraging.

It’s important to know that near-term direction will depend on the price being able to hold reclaimed levels and whether spot demand replaces liquidation-driven buying.

However, if leverage rebuilds too quickly or funding turns aggressively positive, volatility could re-emerge as positioning shifts again. For now, the data shows a market that punished crowded shorts and cleared excess leverage.

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