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Cryptocurrency short sellers lost over $1 billion in a single day as Bitcoin surged to $118,108, creating the largest liquidation event of 2025 when overleveraged traders betting against the digital asset were forced to close their positions.
The bloodbath began Thursday when Bitcoin broke through $116,000 for the first time. More than 232,000 traders saw their short positions wiped out within 24 hours. Over $1.13 billion in crypto positions were liquidated in 24 hours, with $1.01 billion from short sellers, according to CoinGlass data.
Bitcoin futures dominated the carnage. Bitcoin futures led the liquidations with $590 million, followed by ether futures at $241 million. The largest single hit came from HTX exchange, where an $88.5 million BTC-USDT short was liquidated.
Exchange platforms absorbed massive damage during the rout. Bybit led liquidations with $461 million in total losses, with over 93% of that on the short side. HTX and Binance followed with $193 million and $204 million, respectively.
The forced selling created a reflexive effect that pushed prices even higher. When traders borrow money to bet against Bitcoin, exchanges automatically close their positions if losses mount too quickly. This forced buying accelerated the upward momentum that triggered more liquidations.
“Bears in disbelief,” crypto analyst Miles Deutscher posted on social media platform X. Fellow trader Daan Crypto Trades called it a “MASSIVE Short squeeze on BTC & ETH.”
The rally gained steam from multiple catalysts. President Trump posted pro-cryptocurrency messages on Truth Social, adding political momentum to the surge. “Bitcoin’s rally is being driven by a mix of strong ETF inflows, renewed institutional demand, and a broad risk-on environment as investors anticipate Fed rate cuts,” said Joe DiPasquale, CEO of crypto fund manager BitBull Capital.
Corporate buyers also fueled demand. Companies are loading Bitcoin onto their balance sheets by selling shares or issuing debt to fund purchases. This institutional adoption provided fundamental support beneath the technical rally.
Bitcoin’s price surge marked a 6.2% increase from the previous day. The cryptocurrency has gained 8.3% over the past week and now commands a market capitalization of $2.35 trillion.
Other major cryptocurrencies joined the rally. Ethereum climbed 7% to $2,970, while Dogecoin jumped 6% to $0.192. XRP added 5.5% to reach $2.55.
The liquidation event exceeded previous records for 2025. Nearly 90% of all liquidated positions were shorts, showing how aggressively traders had bet against the rally before being proven wrong by market forces.
