Woofun AI reports that a sudden surge in Ethereum prices forced the closure of $270 million in crypto futures positions over 24 hours, leaving short sellers exposed. This market chaos was driven primarily by a sharp divergence in trader positioning across major assets.

The bulk of the carnage occurred in Ether perpetual futures, where $156.92 million in positions were forcibly closed. A staggering 89.38% of these liquidated contracts were short positions, indicating that bearish traders betting against Ether were caught off guard by the upward move. This imbalance triggered a cascade of forced buybacks that likely amplified the price surge.

In contrast, Bitcoin recorded $102.99 million in liquidations, with short sellers still comprising 60.89% of the total volume.

Woofun AI data shows that while bearish sentiment existed across the board, it was significantly more pronounced on Ethereum, rendering it far more susceptible to short-squeeze dynamics than its larger counterpart.

A notable outlier emerged in The Sandbox (SNDK), where $10.9 million in liquidations occurred but with 86.21% being long positions. Unlike the broader market where shorts capitulated, traders betting on price increases for this metaverse token were forced to exit, signaling a distinct downward trajectory for the asset.

These figures underscore the extreme risks inherent in high leverage within perpetual futures markets, where open interest and funding rates serve as critical indicators of trend direction. The stark divergence between Ethereum and SNDK liquidations highlights a fragmented market where sentiment varies drastically by asset. This event marks a severe warning for overleveraged participants navigating such volatile conditions.