Over $1 Billion in Shorts Liquidated as Bitcoin Rockets to $118,000

Bitcoin Soars Past $118K, Triggers Over $1B in Short Liquidations

Bitcoin surged past the $118,000 mark Thursday, igniting a wave of liquidations that marked the largest short squeeze of 2025 to date. In total, more than $1.13 billion in leveraged positions were wiped out over the past 24 hours—$1.01 billion of which came from short sellers caught off guard by the rally.

Open interest in bitcoin futures jumped by $2 billion in just four hours, with bullish bets now slightly outweighing bearish ones at a 52% long-short ratio. BTC-led futures accounted for $590 million in liquidations, followed by $241 million from ether futures.

Roughly 237,000 traders saw their positions liquidated, with the largest single loss—an $88.5 million BTC-USDT short—occurring on HTX. Over 90% of the liquidations were shorts, reflecting widespread bearish positioning ahead of bitcoin’s breakout.

Bybit absorbed the heaviest hit with $461 million in liquidations, 93% of which were short-side. Binance and HTX followed with $204 million and $193 million, respectively.

These short liquidations not only lock in losses but often accelerate price momentum, as exchanges automatically buy back assets to close positions—fueling further upside.

The latest rally comes amid a wave of renewed market optimism, fueled by improving sentiment in equities and speculation around favorable U.S. crypto policy shifts. Alongside bitcoin, major altcoins also rallied: XRP rose to $2.76, ether (ETH) neared $3,000, and dogecoin and solana gained as much as 5%.