Crypto Short Squeeze Wipes Out $1.2B in One Hour as Bitcoin Reclaims $68K
Over $1.2 billion in crypto short positions were liquidated in a single hour as Bitcoin pushed past $68,000. Three Hyperliquid whale wallets lost over $194 million combined during the rapid market move. Falling Treasury yields provided the macro catalyst ahead of crucial FOMC meeting minutes.
Derivatives markets just experienced one of the sharpest short flushes of the year. In a single 60-minute window, forced buying erased $1.23 billion in short positions as Bitcoin pushed above $68,400 and Ethereum reclaimed $2,000.
Decentralized order books bore the heaviest damage. Three massive whale positions on Hyperliquid were completely cleared out, accounting for $194 million in wiped-out capital, with the single largest wallet losing 1,800 Bitcoin in one sweep.
The cascade was sparked by macro mechanics, as a doubling of Treasury debt buybacks drove bond yields down from multi-decade highs. Forced market-buy orders took over from there, sending liquidity hunting upward ahead of the latest FOMC minutes.