Crypto Short Liquidations Reach $375 Million in One Hour

Crypto markets saw $461 million in liquidations in one hour, including $375 million in short positions, as Bitcoin rebounded after U.S. midterm election results were announced and squeezed traders betting on lower prices.

A short position is a trade that benefits if an asset's price falls. When prices rise, traders holding shorts can face pressure to close those positions, a dynamic known as a short squeeze.

The $461 million figure covers crypto markets overall and is not a Bitcoin-only liquidation total. Short positions accounted for most of the one-hour tally, showing that traders positioned for declines made up the largest part of the reported liquidation wave. Bitcoin's post-election rebound was the backdrop for that marketwide squeeze.