Crypto Traders Lose $1B in 24 Hours as Short Sellers Face Rising Pressure
Key Takeaways
- Crypto liquidations topped $1B on Thursday after bitcoin hit a 2026 low of $59,018.
- Critics warn that the market correction leaves the derivatives space overcrowded with bitcoin and ethereum shorts.
- Analyst Pepesso warns a Bitcoin rally to $69,500 could trigger a massive $4.7B short squeeze.
Bitcoin Bears Face Key Thresholds
Cryptocurrency liquidations topped $1 billion on Thursday, hours after bitcoin plunged to $59,018, its lowest level so far in 2026. Market data as of 3 a.m. EST showed that $781 million in leveraged long positions had been liquidated in 24 hours, compared with $218 million in shorts. A total of 176,694 traders were liquidated, and $12.21 million was the largest single liquidation order.
Liquidations on bitcoin alone reached $413 million—accounting for roughly 40% of the total—split between $320 million in long bets and $93.4 million in shorts. While the top cryptocurrency’s recovery swung the pendulum toward leveraged short positions, analysts warn bitcoin will likely see more massive liquidations should it drop below the $58,000 threshold.
Ethereum, meanwhile, saw the next-largest liquidations at $230 million, with long bets accounting for $170 million, or 74% of the total. The spike in ethereum liquidations followed the digital asset’s plunge to $1,557, which left its market capitalization well below the $200 billion mark. Solana, which briefly plunged below $65 on Wednesday, June 3, saw liquidations on the digital asset mount to $46 million, split between $37 million in longs and $9 million in shorts.
There were also notable liquidations of long bets on XAG at $25.5 million, Dogecoin at $13.4 million, XRP at $12.6 million and HYPE at $7.3 million.
This rapid approach to the $1 billion milestone represents the largest single-day flush of leverage since the first week of June market correction, which was characterized by relentless, cascading liquidations. With aggregate open interest shifting and analysts broadly predicting a deeper macro decline for bitcoin and the broader digital asset complex, skeptics caution that the derivatives space has become an overcrowded short trade.
This heavy bearish positioning creates a prime environment for a massive short squeeze. According to social media market analyst Pepesso, a bullish reversal that pushes bitcoin to $69,500 would trigger an explosive liquidation cascade capable of vaporizing upwards of $4.7 billion in short contracts. In tandem, Pepesso notes that Ethereum bears are exposed to similar systemic risks, with short liquidations estimated to skyrocket to $2.4 billion should the second-largest cryptocurrency breach the $1,875 resistance level.
