The cryptocurrency market experienced a significant "short squeeze" over the past 24 hours, resulting in $191 million in total liquidations. Data from Coinglass highlights a sharp imbalance in these liquidations, with short positions bearing the brunt of the volatility, accounting for $158 million (approximately 83%) of the total. Conversely, long positions saw a relatively minor $33.14 million in wipeouts.

​Liquidations occur when an exchange forcefully closes a trader’s leveraged position because they can no longer meet the margin requirements to keep the trade open. In this instance, the massive liquidation of short positions suggests a sudden, aggressive upward price movement that caught bearish traders off guard. As prices climbed, traders who bet on a market decline were forced to buy back assets to cover their losses, further fueling the upward momentum—a classic market mechanic known as a short squeeze.

​This event underscores the high-risk nature of using high leverage in crypto trading. Even during periods of perceived stability, a sudden spike can trigger a "liquidation cascade," where one forced exit triggers another. For market observers, the dominance of short liquidations often signals a shift in sentiment, potentially clearing out "weak" bearish hands and paving the way for further bullish consolidation or heightened volatility as the market seeks a new equilibrium.

​Would you like me to explain how "long" and "short" positions work in leverage trading or look up the specific coins that saw the most liquidations.