TLDR
A sharp rebound in major coins triggered a huge short squeeze that liquidated about $4.7 billion of leveraged crypto positions in 24 hours.
- Roughly $4.73 billion of futures positions were wiped out, with shorts slightly more affected than longs, led by ETH, BTC and large altcoins.
- The squeeze followed one of the worst selloffs since FTX, flushing out aggressive bears but leaving leverage and volatility still elevated.
- Key signals now are open interest, funding rates and whether Bitcoin holds the 60,000 region, which will shape whether another squeeze or fresh dump comes next.
Deep Dive
1. What Was Liquidated
Tokenpost reports that in the 24 hours ending 7 June about $4.73 billion in leveraged positions were liquidated as prices rebounded, triggering a short squeeze.
Around $2.46 billion (51.9%) of that came from short positions and $2.27 billion (48.1%) from longs, meaning bears took slightly larger losses as the market bounced.
By asset, Ethereum (ETH) saw about $1.43 billion liquidated, Bitcoin (BTC) roughly $871.7 million, with major altcoins like Solana (SOL), XRP and Dogecoin (DOGE) also suffering hundreds of millions in forced closures. Binance handled about 60% of liquidations in the latest four hour window, with Hyperliquids flow over 90% shorts.
A huge chunk of both bullish and bearish leverage was force-closed, but the marginal pain was on shorts who were caught leaning too hard into the downside.
2. How It Fits Into The Bigger Crash
This squeeze came immediately after a brutal week where nearly $390 billion in market cap vanished and almost $7 billion of mostly long positions were liquidated.
Macro shocks, including stronger U.S. jobs data and large spot Bitcoin ETF outflows, had already driven BTC below 60,000 and ETH toward 1,550, pushing sentiment into Extreme fear with a fear & greed index near 14.
CoinsKid derivatives data still shows global perpetual open interest around $370 billion and average funding slightly negative, confirming that leverage is lower than recent peaks but far from fully reset.
The market is in a high-volatility deleveraging regime where both sides of the book are being punished as positioning swings from over-long to over-short.
3. What To Watch Next
- Open interest and funding: If open interest climbs again while funding turns strongly negative, another sharp move up could trigger a fresh short squeeze; extreme positive funding would flip risk back to longs.
- Key price zones: BTC holding above roughly 60,000 and ETH above the mid?1,000s reduces downside liquidation risk; repeated breaks lower with high leverage would favor a new long squeeze instead.
- Flows and macro: Continued spot ETF outflows and risk?off macro data would cap any squeeze-driven rally, while stabilizing flows could let the post-squeeze market form a more durable base.
For now, this looks more like a violent positioning reset than a clear trend change; the next edge comes from tracking leverage metrics and major support zones rather than chasing the squeeze itself.
Conclusion
A $4.7 billion liquidation burst shows how crowded short positioning met a sharp rebound and got squeezed, on top of an already severe long washout. The result is a thinner, more nervous derivatives market where leverage still matters, but future direction will hinge on how quickly open interest, funding and ETF flows stabilize around key Bitcoin and Ethereum levels.
CoinsKid.Com