$262M in short positions liquidated from crypto market in a single hour

Short sellers just had a very bad hour. Roughly $262.12 million in short positions were wiped out across crypto derivatives markets in a single 60-minute window, sending a clear message to anyone betting against the current rally: the market disagrees with you, and it has the leverage to prove it. The event marks the most aggressive single-hour liquidation spike of the year, topping a $248 million short liquidation episode in April and a $111 million wipeout in July. How short liquidations create their own momentum For anyone unfamiliar with the mechanics, a short liquidation happens when a trader who has borrowed and sold an asset (betting its price will drop) gets forced out of their position because the price moved up instead. The exchange closes the trade automatically to prevent further losses, which requires buying back the asset at the higher price. Now multiply that by thousands of positions across multiple exchanges, all hitting their liquidation thresholds within minutes of each other. The forced buying creates additional upward pressure, which triggers more liquidations, which creates more buying. Shorts accounted for the overwhelming majority of liquidated positions, co...