Bitcoin Short Squeeze Triggers $39M Liquidation Cascade
Bitcoin News Bitcoin (BTC) led a sharp short-squeeze reversal over the past four hours, as roughly $39.12 million in leveraged positions were force-liquidated across major venues. Derivatives data shows 88.65% of those liquidations hit short sellers, confirming the move was a deleveraging of bearish bets rather than a simple spot rally. Binance absorbed the heaviest damage, with $17.12 million in forced closures — 43.77% of the total — and 87.3% of those were shorts. Bybit, OKX, HyperLiquid and Gate all posted short-liquidation shares near 90%. Our reading of the order flow points to cascading buy-ins as underwater Bitcoin shorts were mechanically unwound. The spot market responded to the upside as those shorts were flushed. Bitcoin traded 3.10% higher near $65,862 during the squeeze, while Ether climbed 4.53% to around $1,933, with both large caps acting as the pivot that absorbed the forced buying. Major altcoins followed: XRP rose 4.48%, Solana 3.91%, Dogecoin 2.52% and BNB 2.12%. Capital tilted toward the majors — Bitcoin dominance edged up 0.18 points to 58.73%, and Ethereum dominance rose 0.17 points to 10.37%. The pattern suggests broad position rebalancing, not token-specific catalysts, drove the bounce, with liquidity favoring the largest assets first. Institutional flows reinforced the recovery. U.S.