Bitcoin News Today: Bitcoin $10M Short Liquidated as Price Surges Past $120,000

A $10 million Bitcoin short position was liquidated on Bybit in early August 2025, following a sharp price increase that pushed BTC above $120,000. The liquidation occurred as bearish traders, who had bet against a sustained rally, were unable to withstand the rapid price appreciation, leading to one of the largest single short liquidations in the recent crypto market [1]. This event reflects the heightened volatility and leveraged exposure present in the derivatives market, where significant positions can be wiped out quickly amid sudden price swings [1].

The liquidation triggered broader market effects, with global crypto liquidations reaching $5.01 billion in the same period. Bybit’s data indicated that 77.7% of these liquidations were from short positions, emphasizing the widespread use of bearish leverage and the vulnerability of such positions during bullish phases [1]. The event also highlighted the interconnected nature of crypto assets, as Bitcoin’s surge influenced other major tokens, including Ethereum, and prompted correlated liquidations across multiple platforms [1].

The incident underscores the risks associated with leveraged trading, particularly in an environment where rapid price movements are common. Short sellers who had positioned themselves ahead of an expected pullback found their positions overwhelmed by the sustained upward trend. Analysts suggest that the liquidation is consistent with historical patterns in the crypto market, where sharp price moves often result in large-scale liquidation events, especially in highly leveraged positions [1].

Despite the absence of direct commentary from Bybit’s leadership, the liquidation has drawn attention to the dynamics of leverage and volatility in crypto derivatives. Market observers have noted that the incident could prompt increased regulatory scrutiny, particularly if such events become more frequent or if they point to systemic risks in leveraged trading environments [1].

The broader market remains bullish, with Bitcoin having risen over 1.8% in the 24 hours preceding the liquidation. The sustained upward trend has led to increased inflows into futures and options markets, further reinforcing the dominance of long positions and the difficulty faced by bearish traders during this period [1]. As the market continues to evolve, traders are being reminded of the risks inherent in leveraged positions, particularly during periods of strong price momentum.

Source: [1] Bitcoin's $10M Short Liquidated as Price Surges Past ... - AInvest (https://www.ainvest.com/news/bitcoin-news-today-bitcoin-10m-short-liquidated-price-surges-120-000-2508/)