Short sellers got caught in a squeeze on Tuesday as Bitcoin climbed 2.5% to near $68,424, triggering $1.23 billion in liquidated short positions within 60 minutes. The broader wipeout hit $1.31 billion in that hour, with shorts making up nearly all of it, according to CoinGlass. The move also lifted Ethereum 3.9% back above $2,000 to $2,084.
The liquidation cascade
Bitcoin positions accounted for roughly $770 million of the wipeout, while Ethereum added $430 million. Over the past 24 hours, the toll ran to $1.57 billion across 114,038 traders, with shorts making up $1.41 billion of that. The largest single order was an ETH position on Bitget worth $32.18 million.
It wasn't just retail. Three whale wallets on Hyperliquid absorbed $194 million of the damage combined. One wallet, 0x8c96, lost its entire 1,800 BTC short — about $117 million. Another, 0x431f, was wiped out with 677 BTC liquidated, roughly $44 million. A third, 0x004e, lost 500 BTC worth about $33 million.
What's driving the rally
The rally was sparked by Treasury buybacks that pulled yields down from a 19-year high. That gave risk assets a bid, and crypto followed. The playbook echoes early July, when short liquidations carried BTC from $62,000 higher. This time the move was faster — an hour, not a week.
FOMC minutes ahead
The Federal Reserve's minutes from its July meeting are set for release at 2 pm ET. Rates were held at 3.50% to 3.75%, but three regional Fed presidents dissented in favor of a hike. Markets currently price roughly 65% odds of a September hold, per Newsquawk. The minutes could shift that number, and traders will be watching for any hint of a hawkish tilt.
