Bitcoin surged past the $118,000 mark early Friday in what has become the biggest blow to leveraged bears this year. Within 24 hours, more than $1.13 billion in crypto positions were liquidated, including an overwhelming $1.01 billion from short sellers, marking the largest short-side wipeout of 2025. Approximately 237,000 traders were liquidated, with the single biggest loss being a $88.5 million BTC-USDT short on HTX. G.Business, reports, citing CoinDesk and data from CoinGlass.
The majority of the liquidations occurred on Bybit and HTX. Bybit alone saw $461 million in liquidations, with 93%of them on the short side. Binance followed with $204 million, and HTX with $193 million. This imbalance highlights just how aggressively traders were betting against the rally — and how quickly the market punished them.
Bitcoin futures led the liquidation wave, accounting for $590 million, followed by Ether futures with $241 million. Open interest in BTC-tracked futures rose by $2 billion in just four hours, and the long/short ratio shifted slightly bullish to 52%, showing growing confidence in continued price increases.
Short liquidations happen when traders who borrow capital to bet against the market are forced to close positions as prices rise, locking in losses and triggering buy orders that drive prices up even further. These are known as reflexive events, where liquidations both confirm and accelerate bullish momentum.
The sudden price movement comes amid renewed optimism in the crypto market, fueled by positive signals around U.S. regulatory developments and sustained strength in global equity markets. Traders are once again betting on crypto as a hedge and high-volatility growth asset.
With Bitcoin now at its highest level in months, this massive short liquidation event underscores the dangers of leverage in fast-moving markets — and the speed with which sentiment can shift. For Swiss investors and global observers alike, this rally is a stark reminder that in crypto, the line between opportunity and risk is razor-thin.
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