CryptoQuant: The Strongest Short Squeeze in Binance History: $311 Million in Liquidations
A record short squeeze on Binance accompanied Bitcoin’s strongest day since February 2026, with over $1.4 billion in short positions liquidated across the market.
According to CryptoQuant data, Binance carries approximately 36% of Bitcoin open interest. Yesterday, over $311 million in short positions were liquidated on the platform in just a few hours. CryptoQuant described this movement as the strongest short squeeze seen on Binance since the start of Bitcoin futures trading. The reason this data stands out is not just that the liquidations reached a high amount, but that they occurred in a short period on a platform hosting a significant portion of the market.
The sharp movement on Binance coincided with a strong surge in Bitcoin’s price. Bitcoin gained approximately 7.1% yesterday, marking its best daily performance since February 2026. CryptoQuant reported that over $1.4 billion in short positions were closed across the entire market. A chart comparing long-term Binance data also showed that short liquidations tend to concentrate in sharp spikes during certain periods.
How were short positions liquidated on Binance?
Investors who open short positions trade with the expectation that the price will fall. When the price rises contrary to expectations, losses grow and the collateral deposited to maintain the position may become insufficient. In this case, trades are automatically closed; investors are forced to buy Bitcoin to limit their losses. These forced purchases create additional demand during a rally, potentially accelerating price movement for a short period.
Such short squeeze events also reveal the impact of leveraged trading on the market. When liquidations are concentrated within a few hours, price movements can become sharper, more sudden, and more unpredictable. CryptoQuant noted that these liquidations can create sharp and unpredictable movements that could send shockwaves through the entire crypto market.