Woofun AI reports that a severe short squeeze swept through the cryptocurrency perpetual futures market, disproportionately impacting bearish positions in Bitcoin (BTC) and Ethereum (ETH). This volatility wave also affected Solana (SOL), highlighting the fragility of leveraged bets across major digital assets.

Bitcoin led the liquidation cascade with $240 million in positions forcibly closed.

Notably, 61.83% of these were short positions, indicating that a rapid price increase caught bearish traders off guard. This disproportionate loss suggests that sellers were forced to exit as upward momentum accelerated.

Ethereum followed a similar trajectory, recording $130 million in liquidations. Shorts accounted for 69.94% of this total, reflecting even stronger bullish pressure relative to market depth.

Meanwhile, Solana (SOL) saw $19.67 million in losses, with a nearly balanced ratio of 50.45% shorts, signaling more neutral market sentiment compared to its peers.

Structurally, the dominance of short liquidations reveals intense short-squeeze pressure. Per Woofun AI, the resulting forced buying created a cascade effect that amplified price moves. Retail and institutional traders must now navigate this volatility by monitoring funding rates and open interest to assess risk.

This event unfolds against a backdrop of regulatory developments and macroeconomic uncertainty. The high leverage environment remains a critical risk factor, prone to sudden reversals. The 24-hour liquidation data underscores the need for caution in this volatile landscape.