BTC Liquidation Review — Shorts Suffer a Crushing Blow, 110,000 People Out of the Market Overnight

Yesterday, behind Bitcoin's rebound, the futures market experienced a bloody "liquidation" storm. According to Coinglass data, in the past 24 hours, the total Bitcoin futures liquidation amount across the network reached approximately $118 million, with about 118,624,523 USD worth of positions forcibly closed.

Shorts were the main players in this "harvest." As Bitcoin rapidly surged from $76,000 to near $79,000, a typical "short squeeze" effect occurred — rising prices triggered many stop-loss orders on short positions, which automatically closed and turned into market buy orders, further pushing up the price and creating a chain reaction of panic-selling. Between April 21 and 22 alone, total liquidations across the network once reached $270 million, with over 110,000 traders being liquidated. The liquidation amounts for long and short positions were nearly equal.

This liquidation data conveys several important signals: First, the current market leverage level is quite high, and even slight market movements can trigger chain liquidations; second, shorts are already bleeding in a persistently negative funding rate environment, and misjudging the trend results in double punishment; third, after the peak of liquidations, open interest often contracts, and the market re-enters a deleveraging phase, which is actually conducive to the start of the next healthy rally. $BTC

BTC traders should take this as a warning: high leverage has always been a double-edged sword. During periods of increased volatility, position management is more important than trend prediction.

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