Market Turmoil: Unprecedented Short Squeeze Sees Liquidity Erode Across Major Cryptocurrencies

The cryptocurrency market has just witnessed a major short squeeze, which led to the liquidation of nearly $247 million in a single hour. The majority of these losses were attributed to shorts, accounting for around $207 million, while long positions suffered approximately $40 million in losses.

According to recent data, Ethereum experienced the most significant impact, with over $147 million linked to this token being erased within minutes. In comparison, Bitcoin’s losses reached approximately $42.8 million. Solana and XRP saw liquidations totaling around $11 million and $5.6 million, respectively.

It is essential to note that the 24-hour trading volume rose by a considerable 15% to $189.7 billion as a result of this development. This significant increase demonstrates that volatility did not deter investors from engaging with the market but rather attracted more activity.

The observed pattern clearly illustrates that bears underestimated the strength of the rebound, and the market responded by activating a short squeeze dynamic. If this momentum is sustained, it may lead to forced position closures that could amplify the rally and sustain the ongoing bullish trend.

It’s a tumultuous time for crypto investors, with $207 million being erased from shorts in a single hour alone.

Source: crypto-economy.com