Bitcoin short liquidations hit $47.5 million in one hour

  • Bitcoin traders saw $47.5 million in short positions liquidated during September 3’s one-hour window.
  • $58.2 million in crypto shorts were liquidated, with Bitcoin representing roughly 82% of the total.
  • Crypto markets recorded approximately $82 million in short liquidations since September 1, mainly in Bitcoin and Ethereum.

About $58.2 million in crypto short positions were liquidated during a single 60-minute window on September 3, with Bitcoin accounting for $47.5 million, or roughly 82% of the total. Short liquidations occur when a leveraged bet against an asset reaches its loss limit and an exchange forcibly closes the position. The resulting buy orders can push prices higher, triggering further margin calls in a cascading squeeze. Since September 1, approximately $82 million in crypto short positions have been liquidated, primarily involving Bitcoin and Ethereum. The latest episode followed a much larger August 19-20 squeeze, when more than $2.7 billion in shorts were liquidated within 24 hours and total liquidations, including longs, exceeded $3 billion. Bitcoin climbed from around $64,100 to above $72,000 during that event. Although the September 3 liquidation total was considerably smaller, its concentration in one hour points to a sudden price move rather than a gradual advance. The episode highlights how expanding crypto derivatives markets and leverage of as much as 50x or 100x on some platforms can amplify relatively modest price changes. At 20x leverage, a 5% rise in Bitcoin can wipe out a short position; at 50x, a 2% increase can have the same effect.

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