Gambler Address's Short Position on ETH Turns into $1.83M Gain, Now Holds 40x Leveraged Bitcoin Short

A trader known as the 'Gambler' address, which had heavily shorted ETH three days prior, is now sitting on a $1.83 million unrealized gain. This shift has triggered a new 40x leveraged short position on Bitcoin.

The move highlights a dramatic shift in short positioning as Bitcoin surges above $96,000. Short sellers who anticipated a further decline were caught off guard by the upward momentum, leading to forced liquidations and a broader market response.

This trend is part of a larger short squeeze in the crypto market, with Bitcoin's rally triggering the forced closure of approximately $700 million in bearish bets. This has pushed Bitcoin closer to a $2 trillion market capitalization.

Why Did This Happen?

Bitcoin's breakout above key resistance levels caught short sellers off guard. The liquidation data reveals a buildup of bearish sentiment during Bitcoin's consolidation phase, which was quickly undone as the price surged.

Ethereum also played a role in the liquidation event, breaking above $3,400 and adding to the upward pressure on the market. The coordinated movement of both Bitcoin and Ethereum forced additional liquidations.

The derivatives landscape was primed for this reversal, as open interest on short positions had been building for weeks. The timing of Bitcoin's breakout created the perfect environment for a self-reinforcing cycle of liquidations.

How Did Markets Respond?

The short squeeze has had a significant psychological impact on the market. This kind of large-scale liquidation event often shakes out weaker traders and attracts momentum players. The breadth of the liquidations across both Bitcoin and Ethereum suggests a broad reassessment of crypto valuations.

Bitcoin ETF inflows have also played a role in supporting higher prices. The inflows during early 2026 provided a foundation that made the short squeeze even more impactful for bearish traders. With forced liquidations meeting genuine institutional demand, prices accelerated higher.