Crypto Markets See $29M Liquidation Wave as Short Squeeze Looms

Crypto markets witnessed a significant wave of forced deleveraging over the past day, with liquidations skewed heavily towards bearish bets. According to data from CoinGlass, the top 20 cryptocurrencies by liquidation volume recorded $29.13 million in liquidations over the prior 24 hours. Notably, short liquidations accounted for $21.94 million, or 75.32% of the total, indicating that downside positioning was disproportionately unwound as prices moved against short sellers.

The dominance of short liquidations implies many traders were leaning bearish into a move that reversed against them, highlighting how crowded positioning can amplify volatility during thin liquidity. This pattern is typically consistent with a short squeeze, where a sharp rally driven by short sellers covering positions often follows an abrupt upside price move.

Separately, Bitcoin (BTC) mining company MARA Holdings ($MARA) raised $600 million in new debt backed by 18,750 BTC, which will be directed towards expanding power-generation assets and artificial intelligence infrastructure. This development underscores a trend of miners using BTC as collateral to fund diversification efforts amid rising competition and energy constraints.