Solana's Price Surge Leaves Short Sellers Reeling

Solana's SOL token has experienced a significant surge in price over the past few days, reaching as high as $116.33 on September 21. This marks a continuation of a rally that began when SOL broke through its $110 resistance level for the first time in seven months.

The short squeeze caused by this rapid increase in price has been substantial, with over $18 million in bearish positions being liquidated. During a single 24-hour period on September 19-20, approximately $36.72 million in SOL short positions were liquidated out of $38.21 million in total liquidations.

This is not the first time Solana has punished short sellers in 2026. In May, a sharp rally past $90 triggered over $16 million in short liquidations. The current episode is significantly larger in scale, reflecting both higher prices and greater overall market participation in Solana derivatives.