Short sellers bracing for a deeper escalation in the Iran conflict suffered $427 million in losses over the past 24 hours, as bitcoin surged beyond $72,000 on news of a ceasefire.
Bearish positioning built over several days unraveled in a matter of hours late Tuesday after Donald Trump announced a two-week U.S.–Iran ceasefire on Truth Social just ahead of his 8 p.m. ET deadline. Bitcoin quickly jumped above $72,700, sparking a sharp short squeeze.
The rally led to $595 million in total liquidations across crypto markets, impacting more than 118,000 traders, according to CoinGlass. Short positions accounted for $427 million of that total, compared with $168 million in long liquidations, underscoring how heavily traders were leaning bearish.
The largest single liquidation was an $11.79 million BTC-USDT short on Binance. Bitcoin made up $245 million of the total wipeout, while ether followed with $126 million. In commodities-linked markets, tokenized Brent Crude futures on Hyperliquid saw $33 million in liquidations, alongside $42 million in West Texas Intermediate contracts as crude prices slid more than 10%.
Oil—previously a focal point of liquidation activity during the conflict—reversed sharply as tensions eased. Brent Crude fell to around $99 per barrel, while West Texas Intermediate dropped to roughly $95, flipping positioning across energy trades.
The bulk of the damage occurred within a 12-hour window. Of the $595 million total, $508 million was liquidated during that stretch alone, with $398 million coming from short positions—marking the most intense short squeeze since early March, when bitcoin rallied on initial ceasefire speculation.
Altcoins were not spared. Solana’s SOL recorded $19.6 million in liquidations, ZEC saw $13.4 million, and XRP posted smaller losses alongside a broader unwind. Even tokenized gold and silver positions were hit as commodities repriced the fading geopolitical risk premium.
The ceasefire itself remains conditional. Trump described it as a “double-sided” agreement, stating that U.S. forces had already achieved their military objectives. Iran confirmed the pause but flagged uncertainty around the Strait of Hormuz, noting that tanker flows would resume for two weeks subject to coordination with its military and technical constraints.
Heading into the announcement, market sentiment had turned extremely bearish. The Fear and Greed Index dropped to 8 on Sunday, extending a run of deeply pessimistic readings throughout the conflict. Santiment data also showed bearish commentary outweighing bullish sentiment across social media, highlighting the crowded downside trade.
Bitcoin’s rally to $72,700 now places it near the top of the $65,000–$73,000 range that has defined price action during the conflict. Whether the move breaks higher or proves to be another false signal will depend on how the two-week ceasefire unfolds.
