Over $137 million in short positions were forcibly closed across cryptocurrency derivatives markets in a 24-hour period, with $30.83 million in Bitcoin shorts and $24.73 million in Ethereum shorts specifically hit. Bears were disproportionately targeted, with a single liquidation event on Hyperliquid reaching $7.01 million on Bitcoin futures contracts. These forced closures create a feedback loop where exchanges automatically repurchase assets, creating buying pressure that pushes prices higher and triggers further liquidations. A comparable event in late December 2025 saw $137 million in total liquidations, but with a more balanced split between long and short positions.
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