Crypto Markets Hit by $250M Short Squeeze
Written by Ohris M. Greyoon, Blockchain & Crypto Expert
Source: Coinmarketcap
Updated: Jan 03 2026- Market Volatility Surge: The cryptocurrency market experienced approximately $250 million in forced liquidations over a 24-hour period, with short positions suffering the most significant losses, highlighting the high leverage risks and volatility inherent in digital asset derivatives markets.
- Ethereum Leads Liquidations: Ethereum saw a total liquidation of $120 million, with short positions accounting for 89.48%, indicating an excessively bearish market sentiment that forced many traders to cover their positions as prices rebounded.
- Bitcoin Liquidation Overview: Bitcoin's liquidation amounted to $108 million during the same timeframe, with short positions comprising 83.95%, demonstrating its continued dominance in derivatives trading despite a slightly lower liquidation amount compared to Ethereum.
- Solana's Liquidation Surge: Solana experienced $21.95 million in liquidations, with short positions representing 91.05%, reflecting its characteristics as a high-volatility asset that attracts substantial speculative trading activity.
About the author
Ohris M. Greyoon
Ohris M. Greyoon holds a Master’s in Computer Science from MIT and has 10 years of experience in blockchain technology and cryptocurrency markets. A pioneer in decentralized finance (DeFi) analysis, he leads Intellectia’s Crypto News, offering cutting-edge insights into digital assets.
