Crypto short squeeze wipes $4.7B positions

TLDR

A violent crypto short squeeze has liquidated roughly 4.7 billion dollars of leveraged positions as prices bounced from recent lows, catching many bearish traders offside.

1. Around 4.73 billion dollars in leveraged crypto positions were liquidated in 24 hours, with shorts slightly exceeding longs as BTC, ETH and major alts moved higher.
2. The squeeze comes after a deep sell off and earlier long wipeouts, leaving sentiment in extreme fear while derivatives open interest and leverage remain elevated.
3. Next, the key risks are further squeeze waves in either direction, driven by crowded levels, funding shifts and macro headlines rather than calm trend trading.

Deep Dive

1. What Was Liquidated

Tokenpost reports that about 4.73 billion dollars in leveraged positions were liquidated in the 24 hours into 7 June, as a rebound triggered a short squeeze, with shorts making up roughly 2.46 billion and longs 2.27 billion dollars overall. This wave hit Bitcoin (BTC), Ethereum (ETH) and majors like Solana (SOL), XRP and Dogecoin, with ETH leading liquidations at about 1.43 billion dollars and BTC at roughly 872 million.

Most liquidations clustered on large venues such as Binance, where one four hour window saw over 45 million dollars in positions closed, nearly 85 percent of them shorts. A separate move saw BTC jump toward 63,700 dollars and erased around 320 million dollars in shorts within minutes, the largest single day short loss since late April according to CoinDesk.

2. Leverage And Sentiment Now

These short side losses come just after several days where longs were heavily liquidated during a sharp drop that erased roughly 250 billion dollars from the crypto market, driven mostly by internal leverage cascades rather than stock market stress. In other words, both bulls and bears have been hit in quick succession.

At the same time, derivatives open interest in perpetuals still sits around the high hundreds of billions of dollars and has even ticked up over the last 24 hours, while the average funding rate hovers slightly negative, pointing to ongoing short bias. The Crypto Fear & Greed Index is around 15, in the extreme fear zone, highlighting that traders are nervous even as squeezes play out.

3. What To Watch Next

Short squeeze risk remains elevated as long as three ingredients are present: heavy leverage, crowded positioning around obvious price levels, and thin spot liquidity. Data highlighted clusters of BTC shorts between the low and mid 60,000s, where moves can forcibly close billions more if price breaks through.

On the other side, if the rebound fails and price revisits or breaks recent lows, overextended late longs can again be liquidated, creating another cascade. Watching where open interest is building, how funding rates shift, and how much of the move is derivatives led versus spot driven will matter more than any single liquidation headline.

Conclusion

A roughly 4.7 billion dollar liquidation burst reflects how highly leveraged and fragile crypto markets remain, with shorts punished just after longs were flushed out. Until leverage resets more fully and sentiment stabilizes, traders and investors should expect further volatility clusters driven by derivatives positioning and macro surprises rather than a calm, linear recovery.