A rare market event has occurred where Bitcoin faced a 1,724% liquidation imbalance affecting numerous short positions.
Bitcoin Short Liquidations
On July 13, 2025, Bitcoin experienced a liquidation imbalance of 1,724%, primarily affecting short positions on major exchanges. In a short span of 12 hours, $3.66 million in short positions were liquidated.
Liquidity Wave Affects Thousands of Traders
The situation resulted in a significant wipeout of bearish bets, causing over 97,000 traders to face large unrealized losses, including a $2 million BTC/USDT position.
Concerns Over Excessive Leverage Amid Market Imbalance
Similar events in the past have shown large imbalances due to excessive leverage. Experts emphasize the need for caution when employing such trading strategies.
The liquidation imbalance highlights the potential risks associated with over-leveraged positions in the crypto market. Despite the substantial liquidations, there has been no formal response from regulatory bodies.
