The rapid surge in Bitcoin's price has triggered an unprecedented wave of forced closures among cryptocurrency market short sellers.

Market data reveals that within the 24-hour period ending Thursday, total short position liquidations reached approximately $2.74 billion, surpassing the losses incurred by bears during the October 2025 market crash and marking the largest single-day short squeeze event since records began in 2021.

According to CoinGlass figures, the total liquidation volume across the entire network over the past day approached $3 billion, impacting 172,108 traders. Short liquidations accounted for roughly 92% of this total, while long positions saw approximately $257 million in forced closures, resulting in a short-to-long liquidation ratio exceeding 10:1.

The market experienced intense volatility during this period, with Bitcoin touching nearly $69,900 during Asian trading hours—a rebound of more than $5,700 from Wednesday's low of approximately $64,100. This marks the first time the asset has reached such levels since early June. At the time of writing, Bitcoin is trading above $69,100, representing a 24-hour gain of roughly 8%.

The short squeeze was both concentrated and swift, with over $1 billion in Bitcoin short positions liquidated within a single hour and a cumulative total of $1.42 billion for the full day. Ethereum shorts saw approximately $1.13 billion in forced closures, while Solana shorts experienced around $105 million in liquidations. The largest individual liquidation occurred on the Hyperliquid platform, involving a Bitcoin position valued at $48.8 million.

It is worth noting that since Binance restricted the disclosure of liquidation data in April 2021, CoinGlass only publishes the exchange's closure figures once per second, meaning current statistics and historical comparisons may both understate actual totals.

Market analysts suggest that a short squeeze of this magnitude has effectively cleared out bearish positions betting on price declines. Whether the market can maintain stability above the $69,000 threshold will be a critical indicator to monitor moving forward. Given that this rally is primarily driven by passive buying from short covering rather than fresh demand, some degree of pullback remains a possibility.