Short Sellers Squeezed as $2.7 Billion in Crypto Futures Liquidated

The cryptocurrency market experienced a significant volatility event over the past 24 hours, resulting in over $2.7 billion in leveraged futures positions being liquidated across major digital assets.

The bulk of these liquidations hit short sellers, indicating a rapid price surge that caught bearish traders off guard.

BTC saw approximately $1.42 billion in futures liquidations, with an overwhelming 96.42% of those being short positions. ETH followed closely, with $1.13 billion liquidated, 90.77% of which were shorts.

This event is characteristic of a classic short squeeze, where a rapid price increase forces traders who bet against the asset to buy back their positions, further fueling the upward momentum.