$330M Liquidated in 12 Hours as Short Traders Get Hit Hard

• $330 million in crypto liquidations in just 12 hours
• Short traders lost $254 million amid sudden market surge
• Bitcoin price spike likely triggered the short squeeze

The crypto market saw intense volatility over the past 12 hours, resulting in massive liquidations totaling over $330 million. A staggering $254 million of these losses came from short positions — trades that bet against rising prices. This rapid shake-up suggests a sudden surge in buying momentum, catching many bearish traders off guard.

Such liquidations happen when traders use leveraged positions and the market moves against their prediction. In this case, a likely price pump in Bitcoin and other major assets forced short sellers to exit their trades, triggering a short squeeze — where prices accelerate upward as short positions get liquidated.

Bitcoin Surge Triggers Massive Short Losses

Bitcoin’s price action seems to have played a key role in this liquidation wave. A sharp upward move can force traders holding short positions to cover their losses by buying back into the market, which in turn pushes prices even higher. This chain reaction creates a bullish loop, which seems to be what unfolded here.

While exact causes of the spike are still unclear, market analysts suggest factors such as growing ETF adoption, positive institutional news, or a response to macroeconomic data may have helped push prices up — blindsiding those expecting a dip.

What This Means for Traders

This event is a reminder of how quickly crypto markets can turn. Leveraged trading carries high risks, especially when large amounts of capital are involved. With $254 million in shorts liquidated, bearish traders were the biggest losers in this move, while long positions mostly escaped major damage.

Going forward, traders may look to reduce leverage or reassess strategies, especially when the market shows signs of volatility. As always, in crypto, timing and risk management are key.