Bitcoin Short Squeeze Erupts: $1.12B Liquidated Amid 1,723% Imbalance

yesterday / 16:51

Bitcoin's price surge to $118,100 on July 13, 2025, triggered a historic short squeeze, liquidating $1.12 billion in bearish positions globally within 24 hours. The most intense phase saw $22 million in shorts wiped out in just 60 minutes, primarily on exchanges including Bybit, Binance, and HTX.

Coinglass data revealed a staggering 1,723% liquidation imbalance favoring short liquidations, with only $197,660 in long positions affected during the 12-hour peak. This one-sided event forced the closure of nearly 97,000 leveraged trades, including a single $2 million BTC/USDT position. The cascade amplified derivatives volumes and shifted market sentiment as bearish bets collapsed.

Analysts noted parallels to a similar July 8 event, attributing the volatility to excessive leverage. While the squeeze briefly propelled Ethereum to $3,030, Bitcoin derivatives dominated the fallout. The imbalance underscores systemic risks in crypto leverage trading, though regulators remained silent post-event. Historical patterns suggest such liquidations may fuel short-term price rallies but prompt long-term risk management reforms.