Why did Bitcoin's rebound trigger $504 million in short liquidations?

Bitcoin's recovery from below $60,000 caught many traders positioned for further downside. As Bitcoin rallied towards $63,700, exchanges automatically closed losing short positions, creating more buying pressure and amplifying the move higher.

What is a Bitcoin short squeeze?

A short squeeze occurs when traders betting against Bitcoin are forced to buy back their positions as prices rise. This buying activity can accelerate gains and lead to rapid price movements over a short period.

How large were total crypto liquidations during the rally?

Total liquidations across the crypto market reached approximately $655 million over 24 hours. More than 104,000 traders were affected as volatility surged following Bitcoin's sharp rebound.

Which cryptocurrencies saw the biggest liquidations?

Bitcoin and Ether accounted for most of the forced closures. Bitcoin positions represented roughly $315 million in liquidations, while Ether positions contributed about $201 million.

What caused Bitcoin to rebound from below $60,000?

The rebound followed a period of heavy selling that pushed Bitcoin briefly below $60,000. As bearish sentiment became crowded and traders increased short positions, the market became vulnerable to a sharp reversal.

What is a liquidation in crypto trading?

A liquidation happens when an exchange automatically closes a leveraged position because losses exceed a trader's available collateral. This mechanism helps prevent accounts from falling into negative balances.

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Bitcoin short squeeze wipes out $504M in bearish bets

Written by Liezl GambePublished Jun 8, 2026, 7:13 AM

Bitcoin's recovery from last week's sharp selloff triggered a major short squeeze, wiping out approximately $504 million in bearish positions over 24 hours as traders betting on further declines were caught offside.

According to market data from CoinGlass, total crypto liquidations reached around $655 million and affected more than 104,000 traders, with Bitcoin accounting for roughly $315 million of forced closures and Ether contributing another $201 million.

The largest single liquidation reportedly occurred on crypto exchange OKX, where a Bitcoin futures position worth approximately $12.3 million was automatically closed after moving against the trader.

A liquidation occurs when an exchange forcibly closes a leveraged position after losses exceed a predefined threshold, often accelerating market moves as traders are pushed out of their positions.

The squeeze followed a difficult week for Bitcoin, which briefly fell below $60,000 after pressure from persistent spot ETF outflows, weakness in AI-linked assets and selling linked to corporate treasury activity.

Many traders increased bearish bets near the lows, only to be caught when Bitcoin rebounded to almost $63,800 on Sunday before extending gains to around $63,700 early Monday.

However, the rally later lost momentum as renewed military tensions between Iran and Israel boosted oil prices and weighed on broader risk sentiment, pulling Bitcoin back towards $62,900 ahead of key US inflation data and several high-profile IPOs expected later this week.

At the time of reporting, Bitcoin price was $62,894.33.