Bitcoin, Ether lead massive $427M short liquidation amid U.S.–Iran truce

Short sellers positioned for a continued escalation in the Iran conflict were hit with $427 million in losses over the past 24 hours, as bitcoin surged above $72,000 following the ceasefire announcement.

Days of bearish positioning unraveled within hours late Tuesday after Donald Trump confirmed a two-week ceasefire between the U.S. and Iran on Truth Social just before his 8 p.m. ET deadline. Bitcoin quickly climbed past $72,700, triggering a sharp squeeze on downside bets.

The move resulted in $595 million in total liquidations across crypto markets, affecting more than 118,000 traders, according to CoinGlass. Short positions accounted for $427 million of that total, compared with $168 million in longs, highlighting how skewed market positioning had become.

The largest single liquidation was an $11.79 million BTC-USDT short on Binance. Bitcoin led the wipeout with $245 million in liquidations, followed by ether at $126 million. In commodities-linked markets, tokenized Brent Crude futures on Hyperliquid saw $33 million in liquidations, while another $42 million came from West Texas Intermediate contracts as crude prices dropped more than 10%.

Oil, which had been among the most heavily traded and liquidated assets during the conflict, reversed sharply as tensions eased. Brent Crude fell to around $99 per barrel, while West Texas Intermediate declined to roughly $95, flipping positioning across energy markets.

The majority of the liquidations occurred within a 12-hour stretch. Of the $595 million total, $508 million was wiped out during that period alone, with $398 million coming from short positions—marking the most significant short squeeze since early March, when bitcoin rallied on initial ceasefire expectations.

Altcoins were also caught in the unwind. Solana’s SOL saw $19.6 million in liquidations, ZEC recorded $13.4 million, and XRP posted smaller losses alongside a broader selloff. Even tokenized gold and silver positions were impacted as commodities repriced the fading geopolitical risk premium.

The ceasefire remains conditional. Trump described it as a “double-sided” agreement, stating that U.S. forces had achieved their objectives. Iran confirmed the pause but signaled uncertainty around the Strait of Hormuz, noting that tanker flows would resume for two weeks subject to coordination with its military and technical limitations.

Market sentiment ahead of the announcement had turned extremely bearish. The Fear and Greed Index dropped to 8 on Sunday, extending a run of deeply pessimistic readings throughout the conflict. Santiment data also showed bearish commentary outweighing bullish views across social platforms, reinforcing the crowded downside trade.

Bitcoin’s rally to $72,700 places it near the upper end of the $65,000 to $73,000 range that has defined price action since the conflict began. Whether the move develops into a breakout or proves to be another false start will depend on how the two-week ceasefire evolves.