There has been a significant cleansing in the market recently. Looking at Coinglass data, a total of $653 million in positions have been closed in the near past. Among these, $309 million are long positions, and $344 million are short position liquidations. In other words, it’s not wrong to say that short sellers took a heavier hit.

Focusing on the last 12 hours reveals an even more interesting picture. During this period, 70 positions totaling $271 million have been closed; of which $221 million are short positions, and only $50 million are long position liquidations. This indicates a serious wave of liquidations on the short side. When signs of market recovery emerge, such moves are the expected outcome.

In fact, these data show us this: those trying to hold onto short positions are in trouble. When the market moves upward, such large closures become inevitable. Given the current dynamics, if the pressure on the short side continues, we could see even more aggressive movements.