Derivatives
Crypto Market Sees $113 Million in Shorts Liquidated Amid Price Surge
Traders betting against cryptocurrencies faced substantial losses this past weekend, with $113 million in short positions forcibly closed over a 24-hour period ending October 5, 2026, according to Coinglass data. This figure constituted the bulk of approximately $138 million in total liquidations, with long positions accounting for only $25.16 million.
The majority of liquidated shorts were tied to Bitcoin, which saw $57.07 million in positions closed, while Ethereum followed with $24.04 million. The largest single liquidation occurred on Binance, where a $5.63 million ETHUSDT short was wiped out.
This recent wave of liquidations mirrors a similar event in July 2026, which also resulted in $113 million in shorts being liquidated, driven by a 4.5% rise in Ethereum prices. Such liquidations often lead to a cycle where the exchange must buy back the asset to close positions, potentially pushing prices higher and triggering further liquidations.
The disproportionate number of short liquidations suggests that many traders anticipated falling prices, only to be caught off guard by the market's upward movement. Observers are now watching whether funding rates and open interest will rebuild on the short side, which could set the stage for another potential squeeze.
New Insights on Dogecoin (DOGE)
- Spot Dogecoin ETFs have attracted $327,360 in net inflows, marking three consecutive weeks of positive inflows.
- CoinGlass’ long-to-short ratio for Dogecoin is currently at 1.01, indicating a slight bullish sentiment among traders.
- The 200-day exponential moving average (EMA) is currently at approximately $0.093, serving as a critical support level for DOGE.
- Dogecoin is trading above $0.096, with resistance identified at $0.102.
- The Relative Strength Index (RSI) is near 58, suggesting positive momentum without being overbought.
- The Moving Average Convergence Divergence (MACD) indicator has recently slipped into negative territory, indicating a potential need for consolidation before further advances.
- Maintaining the price above $0.093 is crucial, as a drop below this level could lead to testing support around $0.088 and the 50-day EMA at $0.088.
FAQ
What caused the $113 million in shorts to be liquidated?
The liquidations were primarily caused by a sudden price surge in cryptocurrencies, particularly Bitcoin and Ethereum, which caught many traders betting against the market off guard.
Which cryptocurrencies were most affected by the liquidations?
Bitcoin and Ethereum were the most affected, with $57.07 million in Bitcoin short positions and $24.04 million in Ethereum short positions being liquidated.
What is the significance of the largest single liquidation on Binance?
The largest single liquidation was a $5.63 million ETHUSDT short on Binance, highlighting the scale of the losses traders faced and the volatility in the market.
How do liquidations impact cryptocurrency prices?
Liquidations can lead to a cycle where exchanges must buy back the asset to close positions, which can push prices higher and potentially trigger further liquidations.
What should traders watch for after such liquidations?
Traders should monitor funding rates and open interest on the short side, as a rebuild in these areas could indicate the potential for another short squeeze.