Short sellers wagering on further escalation in the Iran conflict were caught offside, racking up $427 million in losses over 24 hours as bitcoin surged past $72,000 on the ceasefire news.

Bearish bets built over several days unraveled rapidly 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 pushed above $72,700, triggering a forceful short squeeze.

The move drove $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 the market’s heavy bearish tilt heading into the announcement.

The single largest 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 contributed $33 million, alongside $42 million in West Texas Intermediate contracts as crude prices tumbled more than 10%.

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

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

Altcoins were also swept up 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 hit as commodities repriced the fading war premium.

The ceasefire itself remains conditional. Trump described it as a “double-sided” agreement, stating that U.S. forces had already 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 constraints.

Leading into the announcement, sentiment had turned deeply bearish. The Fear and Greed Index fell to 8 on Sunday, extending a streak of extreme pessimism throughout the conflict. Santiment data also showed bearish social media sentiment outweighing bullish commentary, reinforcing the crowded downside trade.

Bitcoin’s rally to $72,700 places it near the upper boundary of the $65,000 to $73,000 range that has contained price action since the conflict began. Whether this marks a breakout or another false move will likely depend on how the two-week ceasefire develops.