TLDR
A violent Bitcoin-led short squeeze has liquidated around 1.9 billion dollars of crypto positions in 24 hours, with some datasets putting the total closer to 3 billion.
- Data from several trackers show roughly 1.9 to 3.0 billion dollars of leveraged crypto positions liquidated in a day, with more than 90 percent coming from shorts.
- The squeeze was triggered by a sharp Bitcoin rally toward 70,000 dollars, driven by falling US yields from Treasury bond buybacks and renewed political support for crypto.
- The event flushed crowded bearish leverage, but derivatives open interest and volatility remain high, so traders face an unstable near term environment.
Deep Dive
1. Scale Of The Wipeout
CoinGlass-based reports cited by Daily Hodl put 24 hour liquidations at about 1.93 billion dollars, including 1.75 billion dollars in short positions and only 179 million dollars in longs, across more than 127,000 traders Daily Hodl.
A CoinsKid community analysis records a daily short liquidation record of roughly 2.74 billion dollars, with total liquidations near 2.99 billion dollars, ranking among the largest deleveraging events on record CoinsKid community summary.
Bitcoin (BTC) shorts contributed around 1.1 to 1.4 billion dollars of the wipeout, with Ethereum (ETH) adding more than 1.1 billion dollars and Solana (SOL) over 100 million dollars, according to multiple reports Tokenpost recap.
2. Drivers Behind The Squeeze
The immediate trigger was Bitcoin breaking from the mid 60,000s to test 70,000 dollars after the US Treasury announced it would double long term bond buybacks from 2 to 4 billion dollars per operation, pushing yields and the dollar lower Bitcoin.com market update.
Lower yields and perceived monetary debasement pulled capital into scarce assets like Bitcoin and gold, while leverage was heavily skewed to downside bets, creating ideal conditions for a short squeeze Yahoo Finance summary.
Sentiment was further boosted by President Trump publicly backing the Clarity Act and engaging major crypto firms, plus renewed inflows into spot Bitcoin ETFs, reinforcing demand during the squeeze CNBC coverage.
3. Market Impact And Risks
CoinsKid derivatives data show perpetuals open interest jumping about 17 percent in 24 hours to roughly 462 billion dollars, and 24 hour derivatives volume nearly doubling, confirming a highly leveraged environment despite the flush.
Large liquidation waves typically reduce crowded short positioning and can clear the way for more organic spot-driven moves, but they also raise short term volatility and can quickly flip pain from shorts to newly crowded longs CoinsKid community analysis.
This squeeze reset a lot of bearish leverage, but with open interest and funding still elevated, the next few sessions are prone to sharp moves in either direction, especially around macro news.
Conclusion
The wipeout of roughly 1.9 to almost 3.0 billion dollars of leveraged crypto positions reflects a classic short squeeze: macro easing signals plus crowded shorts produced forced buying that drove Bitcoin and majors sharply higher.
It cleans up some leverage and confirms cryptos sensitivity to bond and policy shifts, but it does not guarantee a straight line up; future direction will hinge on whether spot demand and ETF inflows sustain prices once the squeeze energy fades.
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