BTC and SOL Short Liquidations Total $2.78M Across 31 Events
A trader known as Calm Long King faced 31 crypto short liquidations, costing $2.78 million in Bitcoin (BTC) and Solana (SOL) bets. BTC short exposure fell from $41.72 million to $22.05 million, with an unrealized loss of $1.09 million and a liquidation price around $89,900. SOL shorts dropped from $30.89 million to $15.12 million, generating a $1.18 million unrealized loss and triggering a $142 liquidation level. Amid strengthening BTC momentum, the trader added to a Zcash (ZEC) short and closed the SOL position. These rapid liquidations highlight the dangers of high-leverage crypto trading and underscore the importance of margin monitoring. Traders should adjust risk management settings and watch critical support levels to avoid similar losses.
Bullish
These mass short liquidations removed significant sell-side pressure and forced buys of BTC and SOL, triggering a short squeeze. Historically, liquidation cascades in Bitcoin have sparked bullish momentum, as seen in the March 2020 and January 2021 squeezes. In the short term, this event may drive further upside as forced buying lifts prices. Over the long term, heightened awareness of margin risk could temper leverage use, promoting steadier growth but still supporting a bullish bias if market sentiment remains positive.