819 Crypto Market Turmoil: $2.739 Billion in Short Positions Liquidated, Setting a New Record for the Largest Short Squeeze in History

Odaily News: The cryptocurrency market experienced a sharp rally on August 19, triggering massive liquidations of short positions. According to Coinglass data, the total liquidation volume across the market that day reached $2.987 billion, with short-position liquidations accounting for as much as $2.739 billion, while long-position liquidations totaled approximately $248 million. Historical data shows that the total daily liquidation volume on August 19 ranks eighth in cryptocurrency market history, while short-position liquidations set an all-time record.

Notably, among the top 10 and even top 30 historical liquidation events in the cryptocurrency market, the August 19 market movement stands out as particularly unique. Previous large-scale liquidation events were mostly triggered by market downturns, primarily involving the concentrated liquidation of leveraged long positions. In contrast, the "8·19" event was rare in that it was driven by a market rally, with short-position liquidations dominating.

Analysts point out that large-scale short liquidations tend to amplify upward market movements, creating a "short squeeze" effect. As a large number of accumulated leveraged short positions were forced to close, buying pressure in the market increased, further accelerating the rapid rise in cryptocurrency asset prices.