Massive Crypto Short Squeeze 'Massacres' $449M in Bets

A true "nightmare" unfolded for traders betting on a market downturn in the crypto space over the past 24 hours. Following Bitcoin's breakout to a new all-time high, a massive-scale short squeeze swept through the market, causing one of the most one-sided and brutal liquidation events in months.

According to data from Coinglass, a total of $513 million in leveraged positions were liquidated across the entire network. However, the most shocking figure is the extreme disparity between the two sides: short positions suffered a staggering $449 million in liquidations, while long positions only accounted for $63.52 million. This greater than 7-to-1 ratio indicates that a sudden and powerful price rally gave the bears no chance to react. Over 109,000 traders were "rekt" in this event.

The epicenter of the devastation was the Bitcoin market. Data here shows an even more dramatic disparity, with $218 million in short positions liquidated compared to just $13.28 million in longs. This nearly 16.5-to-1 ratio shows that Bitcoin's price rally was the main "engine," creating a relentless squeeze loop. As the price rose, short positions were liquidated, forcing buybacks of BTC to close the positions, which in turn pushed the price even higher and triggered more liquidations. The clearest evidence of the event's scale was a single liquidation on the Binance exchange, where a BTCUSDT short position worth a massive $51.56 million was wiped out.

Ethereum (ETH) was not immune to the trend, with $132 million in shorts liquidated compared to just $14.23 million in longs. Other sectors like Meme and AI, which had already been rallying, also contributed to this squeeze, making those who bet against the momentum pay a heavy price.

This "massacre" of the bears is a reminder of the power of short squeezes in the crypto market. It not only clears out a massive number of short positions from the market but also acts as a form of "rocket fuel," adding further strength to the price rally. This squeeze has firmly reinforced bullish sentiment and may have cleared the path for a more sustained uptrend ahead.