The market moved sharply over the past 24 hours, catching short sellers by surprise. As prices climbed, short positions worth more than $718 million were liquidated, making this the largest short-side wipeout since the October 10 crash.
Traders betting on a price drop were forced to exit their positions, causing a cascade of liquidations. This shows how quickly momentum can shift in the market and how powerful buying pressure can overwhelm bearish trades.
Events like this highlight the market’s volatility and the risks of betting against strong trends. Even experienced traders can be caught off guard when sentiment flips so suddenly.