The crypto market witnessed a dramatic short squeeze on July 10, with more than $1.13 billion in leveraged positions liquidated in just 24 hours. According to data from Coinglass, at least $1.01 billion was wiped out from short sellers alone. The mass liquidation marked one of the largest single-day wipeouts in 2025, triggered by a sharp rally in Bitcoin that blindsided bearish traders.
A short squeeze occurs when traders betting against an asset (shorts) are forced to buy back into the market to cover their losses, driving prices even higher. On July 10, this chain reaction intensified as Bitcoin’s breakout triggered liquidations across a wide range of altcoins, amplifying market volatility and upward momentum.
Ethereum, Solana, and other major cryptocurrencies also experienced double-digit gains, contributing to the total liquidation figure and reflecting a broad market rebound.
Bitcoin surged past $117,000, setting a new all-time high. The price spike caught many short sellers off guard, forcing exchanges to automatically close their leveraged positions as prices moved against them. It is one of the perils of over-leveraging in crypto trading, especially during periods of bullish momentum. The wipeout of $1 billion in shorts is an example of how fast sentiment can flip in the crypto space and the risk traders face when betting against the trend.
The liquidation wave can also be seen as a bullish signal, clearing out bearish pressure and potentially paving the way for a more sustained rally. With Bitcoin at record highs and investor confidence surging, the stage may be set for a new phase of crypto market expansion, provided momentum holds and macro conditions remain favorable.