Bitcoin Surges Past $118K, Triggers $1B Short Liquidation Spree

Bitcoin (BTC) skyrocketed to a record-breaking $117,999.80, igniting the biggest short squeeze of 2025. In just 24 hours, more than $1.13 billion in leveraged positions were liquidated, with a staggering $1.01 billion wiped from short sellers — the largest single-day short liquidation of the year.

The rally was driven primarily by BTC futures, which accounted for $590 million in forced liquidations. Ether (ETH) followed with $241 million. In total, roughly 237,000 traders were liquidated, highlighting how aggressively the market was positioned against bitcoin’s breakout. The largest liquidation occurred on HTX — an $88.5 million short position on BTC-USDT.

Exchange data showed Bybit bore the brunt of the damage, reporting $461 million in total liquidations, with over 93% coming from shorts. Binance and HTX followed with $204 million and $193 million, respectively. According to CoinGlass, nearly 90% of all liquidated positions were shorts.

Short liquidations occur when traders bet against the market using borrowed funds and are forced to close positions as prices rise. This reflexive process often fuels further upward momentum, creating a self-reinforcing rally.

The dramatic surge in BTC coincided with renewed investor optimism, fueled by bullish policy signals from the U.S. and strength in equity markets. Bitcoin’s momentum also lifted major altcoins, with XRP climbing to $2.5849, ETH crossing $3,000, Dogecoin reaching $0.1990, and Solana (SOL) trading at $165.32 — each gaining as much as 5%.

The liquidation-driven rally marks a powerful shift in sentiment, catching overleveraged bears off-guard and reinforcing bitcoin’s dominance in an increasingly bullish crypto market.