TLDR
Over $250 million of leveraged crypto short positions were wiped out in roughly an hour as Bitcoin (BTC) and Ethereum (ETH) ripped higher after US CPI data.
- Data from derivatives trackers show more than $250 million in shorts liquidated in an hour, with ETH responsible for over half of the damage.
- The squeeze was driven by crowded short positioning into the CPI release and high leverage, turning liquidations into forced buying that amplified the move.
- Open interest remains large and ETH is leading, so traders should expect continued volatility and watch key levels rather than assuming the squeeze is over.
Deep Dive
1. Size And Focus Of The Liquidations
Multiple reports citing CoinGlass data note that over $250 million in short positions were liquidated in about one hour as BTC rebounded toward 79,000 dollars and ETH spiked above 2,600 dollars, with more than half of that in ETH alone. One recap puts total daily liquidations at roughly 660 million dollars, with shorts making up around 400 million dollars of that figure, and nearly 100,000 traders affected. A detailed breakdown shows ETH accounting for about 250 million dollars in liquidations, versus about 170 million dollars linked to BTC in the same 24 hour window, confirming that Ethereum led the squeeze across majors. These numbers are consistent with reports that broader leveraged crypto positions saw 684 to 758 million dollars liquidated in 24 hours, with around 422 to 424 million dollars coming from shorts.
The headline 250 million dollar figure is part of a broader liquidation wave where short sellers, especially in ETH, took most of the losses in a single high volatility session.
2. Drivers: CPI Shock And Crowded Shorts
The liquidation burst followed the latest US Consumer Price Index release, which broadly matched expectations but came after traders had positioned defensively. Many traders were paying to be short ETH in perpetual futures, with funding rates turning negative and shorts outnumbering longs before the move. When ETH jumped 6 to 8 percent in under an hour and BTC reversed higher, exchanges forcibly closed short positions, buying spot and futures to cover, which pushed prices higher and triggered further liquidations. At the same time, market wide derivatives open interest remains elevated at around 463.88 billion dollars, only slightly down intraday, so the squeeze reduced some risk but did not flush leverage out of the system.
3. What To Watch Next
ETH has established an important support area near 2,500 dollars, with resistance in the 2,650 to 2,800 dollar range, while BTC is trading just below the psychologically important 80,000 dollar level. With altcoin rotation indicators improving and ETH outperforming BTC, some analysts talk about the start of ETH season, but this depends on whether ETH can hold above new support during upcoming macro events such as Federal Reserve meetings. For traders, the key signals to monitor are derivatives open interest, funding rates, and positioning around major data prints; as recent price action showed, both longs and shorts can be liquidated in the same hour when leverage is high.
If you are using leverage, treat CPI releases and other macro events as high risk windows and size positions conservatively, because even correct directional calls can be liquidated before the thesis plays out.
Conclusion
The liquidation of over 250 million dollars in shorts was not a random spike but the result of heavily leveraged bearish positioning colliding with a sharp rebound in BTC and ETH after CPI data. ETHs role as the main driver and the persistence of high derivatives open interest suggest that volatility and further squeezes remain possible, making risk management and attention to macro timing crucial for anyone trading crypto derivatives.
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