Short Sellers Hit with $400M in Liquidations — Largest Since May — Amid BTC, ETH, SOL Rally

Over $460M in Crypto Shorts Liquidated as Bitcoin, Ether, and Solana Rally Sharply

A sudden surge across major cryptocurrencies triggered a massive short squeeze overnight, wiping out more than $460 million in bearish positions—the largest such liquidation event since May.

Bitcoin (BTC) climbed past $112,000, peaking at $112,482.88, while Ether (ETH) jumped nearly 7% to $2,807.16, and Solana (SOL) surged beyond $158, sparking widespread liquidations among leveraged short traders.

Data from Coinglass shows over 114,000 traders were liquidated in the past 12 hours, totaling losses of more than $527 million. Of that, roughly $463 million came from short positions, with the remaining $64 million from long trades. The largest single liquidation involved a $51.5 million BTC-USDT short on HTX.

The sharp moves forced exchanges to automatically close highly leveraged trades as prices moved sharply against bears. This type of liquidation cascade often adds fuel to rallies, as forced buying pushes prices even higher, creating what traders call a short squeeze.

These liquidation-driven price spikes can be self-reinforcing. As shorts are unwound, new momentum buyers often step in, while still-active bears scramble to cover positions. This dynamic has played out across major tokens, with BTC, ETH, and SOL all seeing heavy volume and fast gains.

Liquidation data has become a key tool for traders watching for tops and bottoms. Clusters of forced exits—especially when highly one-sided—are often seen as signals that a local reversal or trend continuation may be near. Some sophisticated traders even position around these events, anticipating volatility from overcrowded trades.

While BTC was only up 2% for the week at the time of reporting, ETH and XRP had both gained over 7%, suggesting that altcoins may be leading the current wave of bullish momentum.