Crypto Derivatives Market Suffers Record $9.71B in Liquidations Amid Historic Short Squeeze

The crypto derivatives market has experienced its most violent two-week stretch in years. Between August 19 and September 2, approximately $9.71 billion in positions were liquidated across the market, with the majority of these coming from traders who bet prices would fall.

Bitcoin was at the center of this carnage, surging from intraday lows around $64,100 to peaks exceeding $71,000-$72,000. Ethereum wasn't far behind in terms of pain inflicted on bears.

The largest concentrated liquidation of shorts since November 2021 occurred during this period, with short positions making up about 92% of the total liquidations. More than $1 billion in short positions evaporated in just one hour during the most intense stretch.