Short sellers faced $2.70 billion in losses as Bitcoin rallied 11% to $72,000 after regulatory clarity remarks from U.S. officials.
Bitcoin’s sharp rise above $70,000 erased nearly $3 billion in short positions, with $2.70 billion liquidated in 24 hours. The surge impacted 172,108 traders, marking the largest short squeeze since 2021.
BTC had traded between $60,000 and $65,000 for six weeks, with Wall Street anticipating further declines. The 11% jump followed U.S. President Donald Trump’s call for Congress to pass the Clarity Act, a regulatory framework for digital assets.
The last major short squeeze occurred in October 2025, when Bitcoin’s price crashed from a record $126,000, costing short sellers $2.47 billion. Bitcoin traded at $71,400 early Aug. 20.