Short sellers in crypto derivatives were caught in a violent squeeze on Wednesday after the release of the August core personal consumption expenditures report, with one hour of trading producing a 2,633% imbalance between short and long liquidations, according to U.today.
During the hour the data landed, short liquidations reached $82.61 million while longs lost just $3.09 million, U.today reported, citing CoinGlass. Over 24 hours, 73,709 traders were liquidated and $259.12 million in positions were wiped out.
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Key facts
- CoinGlass data cited by U.today showed short liquidations of $82.61 million against $3.09 million in long liquidations in the release hour, an imbalance of 2,633%.
- Bitcoin touched $83,825.17 at the peak of the move and held nearly 59% of the total crypto market.
- Bitcoin short sellers lost more than $51.69 million over 24 hours, with a single BTC-USDT position liquidated for $6.91 million on the HTX exchange.
- Ether contributed $16.39 million to total liquidations despite dipping to $2,679.29 intraday, while XRP settled at $1.4975.
- The August core PCE report showed prices for more than half of the components in the basket still rising faster than the target rate.
How the squeeze unfolded
The August core PCE print was the catalyst rather than the cause. Price pressures in more than half of the PCE basket components remained above target, keeping the inflation picture stubborn, yet traders treated the release as permission to add risk. That forced leveraged shorts to buy back positions, and the buying overwhelmed available sell-side liquidity.
Bitcoin, Ether and XRP absorbed most of the flow. The most concentrated hit fell on a single BTC-USDT position on HTX, liquidated for $6.91 million. Ether’s liquidations were notable because they occurred even as the asset traded as low as $2,679.29 during the session. XRP moved through the squeeze after settling at $1.4975, joining the most volatile altcoins in triggering stop orders.
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Why it matters
The move showed a market that still reacts mechanically to a single macro release: a crowded short book can be cleared in minutes regardless of whether the underlying inflation data is genuinely soft or merely less bad than feared. That matters for anyone holding leverage, because the losses are concentrated and fast rather than spread over days.
It also matters for how the market reads the wider backdrop. U.S. stocks had stopped rising, oil prices were high, 10-year Treasury yields sat near 5.2%, and the CLARITY Act had failed in the Senate. On paper those conditions pointed lower, yet Bitcoin recovered after a brief dip. U.today attributed that resilience to institutional participation through ETFs, major banks and funds that have entered for the long term and are building the sector independently of Congress.
What to watch
With year-end approaching, U.today flagged the start of fund allocations to 2027 strategies as the next force that could add fresh money to the market. The next inflation and macro data releases, and any further movement on crypto legislation, remain the inputs most likely to test whether that buyer base is as steady as the Wednesday squeeze suggested.
This is not financial advice, and crypto and derivatives markets are volatile and uncertain.
Source: U.Today
