Short sellers had a brutal day. Traders betting against crypto lost $2.74 billion in a single session as bitcoin surged toward the $70,000 level. That figure eclipses the short-side losses recorded during the October 2025 crash, which had been the largest liquidation event in crypto market history.
A record wipeout
The $2.74 billion hit leveraged positions that had piled on bearish bets. When bitcoin moved sharply higher, those positions were forced to cover, accelerating the rally. The previous record for short-side liquidations came during the October 2025 crash, when prices tumbled and shorts briefly profited. Now the script has flipped.
Why the rally triggered the squeeze
Liquidations happen when exchanges automatically close positions that fall below margin requirements. A move this sharp sets off a chain reaction — each forced sale pushes the price further, triggering more liquidations. This time, the trigger was bitcoin's climb toward $70,000, a level that many bears likely thought was out of reach. The result was a single-day loss that topped the one from October 2025, which was itself a record.
What the record says about market sentiment
The fact that a rally, not a crash, produced the largest short-side liquidation event in crypto history is telling. It suggests the market's direction has shifted in a way that caught a crowded short trade off guard. October's crash punished longs; this week punished shorts. The scale of the loss points to how many traders had been betting on further declines.
The $70,000 test
Bitcoin's push toward $70,000 is the immediate driver. Whether it can break through and hold that level will likely determine if more short covering follows. If it stalls, the bears might get a reprieve. If it doesn't, the record could fall again.
