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

A record $10 million Bitcoin short position on Bybit was liquidated in August 2025, marking one of the largest single-order closures in the platform’s history [1]. The event was triggered by Bitcoin’s price surging past $120,000, causing rapid mark-to-market losses for short sellers who had bet against the asset. The liquidation highlights the increasing volatility and concentration of large leveraged positions in the crypto market, especially as Bitcoin continues to trade in a high-range environment.

This massive liquidation occurred amid a broader trend of aggressive bullish sentiment, with Bitcoin’s price showing sustained upward momentum. The incident serves as a reminder of the risks inherent in leveraged trading, particularly in markets where sudden price swings can rapidly erase large positions. The $10 million liquidation on Bybit was notable not only for its scale but also for the speed with which it unfolded—reflecting the real-time, high-velocity nature of modern crypto trading environments [1].

The liquidation also underscores the growing role of centralized exchanges in facilitating large-scale trading activity. Bybit, as a major derivatives platform, has become a key venue for institutional and retail investors to manage exposure to Bitcoin and other crypto assets. The fact that such a large short position could be liquidated on a single platform indicates the concentration of leverage and risk in the current ecosystem.

From an analytical standpoint, the event does not provide a direct indicator of Bitcoin’s long-term price trajectory, but it does highlight the intensity of market sentiment and the leverage being deployed in both long and short positions. If Bitcoin continues to trade above $120,000, further short liquidations may follow, particularly for those who have not hedged or adjusted their exposure accordingly. Conversely, a pullback in price could shift the balance and see long positions face similar risks, though no such developments were reported in the provided data [1].

The broader context includes growing institutional interest in crypto assets. Just weeks prior to the liquidation event, a notable equity raise in the crypto space reached $220 million in total funding, with $10 million paid in Bitcoin at a valuation of $104,000 per BTC [2]. While not directly linked to the liquidation, this funding round reflects the continued maturation of the crypto financial ecosystem and the increasing acceptance of Bitcoin as a store of value and medium of exchange in institutional capital markets.

It is important to note that the $10 million short liquidation was an isolated event, and there was no indication from the available data that this was part of a broader market correction or systemic risk. Nonetheless, it offers a snapshot of the high-stakes trading environment that is increasingly defining crypto markets in 2025.

Source:

[1] title1.............................(https://www.ainvest.com/news/bitcoin-news-today-bitcoin-10m-short-liquidated-price-surges-120-000-2508/)

[2] title2.............................(https://www.blockscholes.com/research)