Bitcoin Rebounds from Flash Crash as Short Squeeze Looms
The recent Bitcoin market volatility has left many wondering if a historic short squeeze is on the horizon.
Last week was one of the most volatile periods in recent history, with Bitcoin experiencing a nearly 25% increase and reaching a high of $80k. However, it suddenly pulled back by over 6%, resulting in the largest crypto 'flash crash' since October 10, 2025.
The market saw massive liquidations, with $108 billion in shorts being cleared within six minutes and $500 million in longs within 30 minutes. Despite this, Bitcoin managed to hold onto its weekly gains, remaining up by over 21%.
One of the most significant signs pointing towards a potential short squeeze is the strong inflows into Bitcoin ETFs. According to SoSoValue, Bitcoin ETFs recorded their highest daily inflow of $507 million on August 19, with IBIT leading the demand with $285 million in inflows.