Crypto Short Liquidations Hit $750M as Ether Surges 20%, Bears Suffer Biggest Losses in Two Years
A massive crypto rally sparked by a 20% surge in ether (ETH) has resulted in over $750 million in short liquidations in the last 24 hours, marking the largest single-day total since 2023, according to data from CoinGlass.
Of the total liquidations, more than 84% were attributed to short positions, as major altcoins surged 10% to 20% in just a few hours starting late Thursday.
Leading the charge, ether surged by 20%, pushing its price above $2,000 for the first time since early March. Dogecoin (DOGE) and Cardano (ADA) each rose by more than 10%, while Solana (SOL), Binance Coin (BNB), and XRP gained at least 7%, driven by positive sentiment and momentum trading.
Short liquidations occur when traders’ leveraged positions are forcibly closed by exchanges due to insufficient margin, triggering a cascade of forced sales. These liquidations often signal extreme market behavior, such as panic selling or buying. When large numbers of shorts are liquidated, it can signal a turning point in the market, suggesting that a price reversal may be imminent.
This latest surge in the crypto markets coincided with Bitcoin surpassing $100,000 on Thursday, with bullish sentiment fueled by a trade deal between the U.S. and the UK.
The massive liquidation event on Thursday ranks among the most severe since Bitcoin’s surge to $93,000 in March, which saw bears lose over $550 million in a weekend squeeze. In April, a similar rally in ETH and DOGE wiped out $500 million in short positions, but this latest move surpassed both, signaling renewed risk appetite and a crowded short trade setup.
According to CoinGlass, the largest portion of the losses came from Binance and OKX, which together accounted for more than $500 million in liquidations. ETH alone contributed to over $310 million in losses, while Bitcoin-tracked futures were responsible for $375 million.
The short squeeze on ETH occurred after the asset had been range-bound for several weeks, with falling institutional interest and retail sentiment. However, the recent Pectra upgrade to Ethereum may have sparked renewed trader interest, with many betting on its potential.
