Bitcoin Short Squeeze Wipes Out Record $2.7B as BTC Nears $70K

Bitcoin’s surge toward $70,000 triggered nearly $2.7 billion in short liquidations within 24 hours, marking the largest forced closure of bearish crypto positions in CoinGlass records dating back to 2021.

Total crypto liquidations approached $3 billion across 172,108 traders. Short positions represented roughly 92% of the losses, while long liquidations totaled about $257 million. That put the short-to-long liquidation ratio at more than 10 to 1, highlighting the intensity of the Bitcoin short squeeze.

The scale even surpassed short liquidations recorded during crypto’s historic Oct. 10, 2025 crash. That selloff, which followed Bitcoin’s record above $126,000, erased around $19 billion in leveraged positions and remains the industry's biggest single-day deleveraging event. Short liquidations during that crash totaled $2.47 billion, below Wednesday’s figure.

Bitcoin traded around $69,100 during Asian hours Thursday, gaining nearly 8% over 24 hours after briefly approaching $69,900. The cryptocurrency had climbed more than $5,700 from Wednesday’s low near $64,100, returning to price levels last seen in early June.

The liquidation wave unfolded rapidly. More than $1 billion in Bitcoin shorts were forced closed in roughly one hour, with BTC liquidations reaching $1.42 billion for the day. Ether shorts accounted for approximately $1.13 billion, while Solana contributed $104.67 million. The largest individual liquidation was a $48.8 million Bitcoin position on Hyperliquid.

The figures carry an important limitation. Binance has restricted its liquidation reporting since April 2021, while CoinGlass records only one liquidation order per second from the exchange. As a result, both current and historical liquidation totals could be understated.

Traders are now watching whether Bitcoin can maintain support above $69,000. Massive short squeezes create forced buying as bearish traders exit positions, but once those positions are cleared, an important source of upward momentum disappears. Sustaining the rally may therefore depend on fresh spot demand and continued buying rather than further short covering.