The post Crypto Liquidations Unleash $112M Storm As BTC And ETH Shorts Get Crushed appeared on BitcoinEthereumNews.com.

The cryptocurrency market just endured a brutal 24-hour storm, with over $112 million in positions forcibly closed. This wave of crypto liquidations wasn’t random—it was decisively led by traders betting against the two largest digital assets. Let’s break down what happened and why it matters for your portfolio. What Triggered This Wave of Crypto Liquidations? A sudden and sharp price movement is often the match that lights the crypto liquidations fuse. When the market moves violently against leveraged positions, exchanges automatically sell a trader’s assets to cover their debt, leading to a forced closure or ‘liquidation’. The past day saw this mechanism fire on all cylinders, creating a cascade of selling and buying pressure that amplified the original price move. Bitcoin and Ethereum: The Short-Squeeze Story The data reveals a clear narrative. For Bitcoin (BTC), $49.14 million was liquidated. Crucially, short positions—bets that the price would fall—made up 62.66% of that total. Ethereum (ETH) told a similar, more intense story with $47.23 million liquidated and a staggering 67.34% being shorts. This pattern suggests a potential short squeeze. Here’s a simple breakdown: Short Sellers Borrow: Traders borrow an asset (like BTC) and sell it, hoping to buy it back later at a lower price. Price Rises Unexpectedly: If the price climbs instead, those short sellers face mounting losses. The Squeeze: To limit losses, they are forced to buy back the asset, which pushes the price up even further, triggering more crypto liquidations in a vicious cycle. Is This Just a BTC and ETH Phenomenon? Not entirely. While the giants dominated, other assets showed different behaviors. For instance, the token LIGHT saw $16.31 million in liquidations, but here, long positions (bets on a price increase) were the majority at 51.43%. This highlights a critical point: crypto liquidations are not a monolithic event.…

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Filed under: News - @ December 22, 2025 3:27 am