Crypto Short Sellers Suffer Over $460M in Liquidations as BTC, ETH, and SOL Soar

A sharp rally in major cryptocurrencies over the past 12 hours unleashed the largest wave of liquidations since May, wiping out more than $460 million in short positions and catching bearish traders off guard.

Bitcoin (BTC) surged past $111,000, reaching $112,482.88, while Ether (ETH) jumped nearly 7% to trade above $2,700, settling around $2,807.16. Solana’s SOL also rallied above $158, triggering significant pain for traders who had bet on further declines.

In total, over 114,000 traders were liquidated, racking up combined losses exceeding $527 million, according to data from Coinglass. Of that sum, approximately $463 million stemmed from short positions—leveraged bets that prices would fall—while just $64 million came from long liquidations. The largest single liquidation was a $51.5 million short position on the BTC-USDT pair traded on HTX.

Liquidations occur when traders using leverage—borrowing funds to amplify their positions—cannot meet margin requirements as prices move against them. Exchanges forcibly close these trades to prevent further losses, which often accelerates price swings in a reflexive cycle.

In this instance, as BTC and ETH surged higher, a cascade of short liquidations likely contributed to sudden bursts of price momentum, forcing additional traders to exit their positions.

Such liquidation waves are closely watched by traders, as they can signal local market tops or bottoms, depending on timing and market context. Spikes in liquidations, especially concentrated on one side of the market, are often used as indicators for potential reversals or confirmations of ongoing trends.

Some traders even position specifically around liquidation dynamics, betting on short squeezes when shorts pile up or long flush-outs when longs become overcrowded. When paired with volume and price action, liquidation data often helps confirm whether a trend remains strong or is nearing exhaustion.

While Bitcoin has risen just 2% for the week, ETH and XRP are both up more than 7%, suggesting the current rally may be driven more by major altcoins rather than BTC alone.