Massive $3 Billion Short Squeeze Wipes Out Bearish Positions in Biggest Liquidation Event Since 2021
Six weeks of heavily leveraged bearish positioning evaporated in just 24 hours as a massive short squeeze swept through crypto derivatives. Over $3 billion in liquidations triggered forced buying across major exchanges. Traders are now watching whether spot demand can sustain the breakout.
Derivatives markets snapped after six weeks of relentless bearish buildup, unleashing a massive short squeeze that erased $3 billion in positions across major exchanges. Bears who stacked leverage expecting lower prices were caught off guard as forced buy-orders cascaded through order books.
The sudden surge wiped out short positions in the largest single-day liquidation event seen since 2021. As derivative open interest collapsed, spot markets stepped in to push prices beyond critical technical resistance levels.
Analysts are now scrutinizing on-chain flows and spot order books to determine if organic demand will consolidate these gains or if the movement was purely driven by mechanical liquidations.