Woofun AI reports that a massive short squeeze, driven by bitcoin's ascent toward $70,000, has resulted in nearly $2.7 billion in losses for short sellers, marking the most significant forced closure wave since records began in 2021. This event, tracked by CoinGlass, highlights a stark divergence from previous market corrections.

The quantitative scale of this deleveraging is unprecedented in recent history. Total liquidations reached nearly $3 billion across 172,108 traders within 24 hours, with shorts accounting for roughly 92% of the total against only $257 million on the long side, creating a ratio of more than ten to one. Per Woofun AI, this figure surpasses the short liquidations from Oct. 10, 2025, when bitcoin crashed after hitting $126,000, generating $19 billion in total liquidations but only $2.47 billion in short losses. Wednesday's event thus represents a larger short squeeze without the accompanying long-side carnage seen in the previous record.

Price action reflected this intense pressure, with bitcoin trading just above $69,100 in Asian morning hours Thursday, up almost 8% over 24 hours after touching nearly $69,900, a swing of more than $5,700 from Wednesday's low near $64,100. The asset has not traded at these levels since early June. The squeeze was concentrated and fast, with more than $1 billion of bitcoin shorts closed in roughly an hour, totaling $1.42 billion for the day. Ether accounted for $1.13 billion and solana $104.67 million, while the largest single position wiped out was a $48.8 million bitcoin trade on Hyperliquid.

Market participants are now watching whether bitcoin holds above $69,000 through the Asian and European session. A squeeze of this magnitude clears out traders positioned against a rally, removing the fuel that drove it; consequently, moves built on forced buying rather than fresh demand have a habit of giving some of it back.