$110 Million in Crypto Shorts Wiped Out in 10-Minute Volatility Burst

A sudden and intense burst of market volatility on October 2, 2026, led to the liquidation of $110 million in short positions across crypto derivatives markets within a mere 10 minutes.

This event is not an isolated incident, as similar instances have occurred before. In fact, another $110 million in shorts were liquidated during a Bitcoin rally in June 2025.

The research suggests that the current wave of short liquidations may be driven by aggressive long positioning, which could keep volatility elevated in the aftermath. This is because traders are reacting to fear of further swings in Bitcoin and Ethereum.