Crypto Carnage: Short Sellers Obliterated as $XXXM Liquidations Rock Markets
Blood in the crypto streets—leveraged bears just got steamrolled.
Short squeeze tsunami
A violent market reversal vaporized over-leveraged positions, triggering cascading liquidations. Exchanges executed margin calls with surgical precision—no mercy for those betting against the rally.
Liquidation domino effect
Stop-loss hunting algorithms feasted as price volatility spiked 300%. The forced selling created textbook reflexive action—more liquidations beget more liquidations. Cue the 'rekt' memes.
Silver lining for bulls?
Every short position liquidated fuels upward momentum. This could be the flush-out needed before the next leg up—assuming traders learned their lesson (they never do).
Bonus jab: Wall Street's 'risk management' teams are currently Googling 'what is a stop-loss.'
$117,706 futures experienced the largest losses, approximately $640 million, followed by Ethereum
$2,992 futures, which saw a $260 million decrease. More than 268,000 investors were wiped out as the market saw a significant surge in prices. This wave brought a new peak for Bitcoin, reaching the $118,000 level.
ContentsThe Wave of Liquidations Rocks the crypto MarketETF Demand and Macro Developments Boost Market Strength
The Wave of Liquidations Rocks the Crypto Market
CoinGlass reported that Bybit led the list of exchanges in terms of liquidation amounts, with a staggering $513.86 million, 93% of which were from short positions. HTX reported liquidations of $204 million, while Binance accounted for $228 million. The largest single loss occurred on the HTX exchange, a short position on the BTC/USDT pair worth $88.5 million. These figures emphasize the critical nature of risk management on platforms where high-leverage trades are concentrated.
Nearly 90% of the liquidations resulted from short positions opened in anticipation of price drops. As investors failed to foresee the sharp rise, the rapidly triggered stop-loss mechanisms created a domino effect, further accelerating price momentum. Consequently, short-term speculators were largely wiped out, intensifying the upward trend.
ETF Demand and Macro Developments Boost Market Strength
In the United States, the total capital invested in spot Bitcoin ETFs has surpassed $15 billion. BlackRock’s IBIT fund, holding more than 700,000 BTC, stands out significantly in the institutional arena. Continued inflows into ETFs are helping to stabilize Bitcoin’s price increase, forming the basis for a rally. According to analysts, as capital continues flowing into ETFs, the upward trend may persist throughout the summer.
On the macroeconomic front, U.S. President Donald Trump’s calls for reducing interest rates to 1% have also heightened risk appetite. Investors are moving towards high-strike call options in the futures market, with strike prices as high as $130,000, preparing for potential monetary expansion by the Federal Reserve.
The surge driven by bitcoin has also fueled a robust rally in altcoins. Ethereum’s futures trading volume surpassed Bitcoin for the first time, pushing its price to $3,000, XRP to $2.60, Dogecoin
$0.196885 to $0.20, and Solana
$164 to $165. The activity in the altcoin market indicates that some investors are shifting their focus beyond Bitcoin.
