Leverage squeeze liquidates $163M crypto positions

TLDR

Around $163 million of leveraged crypto positions were forcibly closed in the past day as a short-heavy squeeze hit Bitcoin (BTC), Ethereum (ETH) and other majors.

1. Derivatives data show about $162.95 million in liquidations in 24 hours, roughly two thirds from short positions as modest BTC and ETH gains tripped stops.
2. Global open interest and total crypto market cap barely moved, meaning the wipeout cleared crowded trades but did not yet drain leverage from the system.
3. Large liquidation clusters still sit near BTC 65,000, so another squeeze is possible if price pushes into those high leverage zones.

Deep Dive

1. Short-Heavy Squeeze, Modest Price Move

CoinGlass figures cited by TokenPost report about $162.95 million in leveraged crypto positions liquidated over 24 hours, with shorts accounting for $111.02 million, or about 68 percent of the total.

Bitcoin (BTC) led with roughly $55.06 million in liquidations, around 90 percent from short positions, while Ethereum (ETH) saw about $50.18 million liquidated, roughly 80 percent shorts. Spot price moves were relatively small: BTC and ETH only ticked higher, but just enough to break through levels where many short positions had tight margins and stop levels.

Analysts quoted in the same piece note that such clusters mainly reveal how crowded positioning was, rather than giving a clear bullish or bearish signal by themselves.

2. Leverage Still High In The Background

CoinsKid derivatives data show total global open interest around 395 billion dollars, up about 2 percent over 24 hours, while perpetuals alone hold more than 390 billion. Funding rates have fallen but remain slightly positive, indicating ongoing long-side leverage rather than a full reset.

At the same time, total crypto market cap is about 2.2 trillion dollars with only a small daily gain, and the Fear & Greed Index sits in Fear, pointing to cautious sentiment despite these squeezes.

The combination of modest spot moves, sizable liquidations and still-elevated open interest suggests this event was a clean-out of crowded shorts, not a broad de-risking of leverage across the market.

3. Liquidation Maps And Next Squeeze Risk

Derivatives maps highlight that much of the remaining liquidation liquidity is now above current prices. Hyperliquids 24 hour BTC map shows a large cluster of short liquidations just above 65,000 dollars, with more stacked toward the 70,000 to 75,000 area.

Analysis from CryptoPotato notes Binances Estimated Leverage Ratio near cycle highs, which previously preceded bouts of sharp volatility and further liquidations. In other words, leverage is still significant both above and below spot price.

Conclusion

The 163 million dollar liquidation burst mainly reflects a short-heavy squeeze in BTC and ETH that cleared crowded positions without fundamentally changing market structure. Leverage remains elevated, and sizeable liquidation pools sit near obvious resistance levels, so future squeezes in either direction remain plausible if prices move into those zones.