Binance saw a $66.3M short liquidation on BTC/USDT, the largest in 2025.
Liquidations surged as the Bitcoin price hit $105K amid volatile market conditions.
Rapid short position closures highlight risks of leveraged trading on crypto exchanges.
Binance encountered the biggest short liquidation event of 2025, with $66.3 million in short positions erased on the BTC/USDT trading pair. This massive liquidation unfolded over several hours, impacting traders betting against Bitcoin’s price. The scale of the event stands out as the largest short squeeze so far this year on the popular cryptocurrency exchange.
Massive Liquidation on BTC/USDT Pair
The liquidation targeted short sellers who anticipated a downward move in Bitcoin. However, as the price reversed upward, their leveraged positions reached margin call thresholds. Consequently, the platform automatically closed these positions to prevent further losses, resulting in a rapid liquidation of $66.3 million worth of shorts.
Source: CryptoQuant
According to CryptoQuant data, short liquidations spike notably when Bitcoin price drops sharply. On May 19, 2025, liquidations hit $66.3 million during a $105K BTC price. Overall, liquidation volumes fluctuate widely, often rising during price declines. Price reached over $105,000 by mid-May.
Such liquidation activity recalls heightened volatility in the Bitcoin market. It signals intense price action that can cause abrupt position closures for highly leveraged traders. Binance’s robust risk management system executed these liquidations efficiently to maintain market stability.
The liquidation event has implications for market liquidity and trader sentiment. It reduced the number of outstanding short contracts significantly in a short time frame. This reduction in short interest may affect Bitcoin’s price momentum as sellers are forced out of the market.
Furthermore, liquidations of this magnitude often prompt increased caution among traders using leverage. They must manage risk carefully, especially in unstable environments where price changes can trigger margin calls. Platforms like Binance continue to enforce strict margin requirements to safeguard both traders and the exchange.
Historical Context and Market Activity
Throughout 2025, Binance has witnessed fluctuating liquidation volumes, but none as large as this recent event. Previous liquidations ranged widely, yet $66.3 million marks a new high for shorts on BTC/USDT within the year. This figure underscores the risks involved with shorting cryptocurrencies amid unpredictable price movements.
It is also worth noting that these positions were dealt with more rapidly in volatile times which shows how quickly stock trading can move. Many traders use leverage to increase their gains, but liquidations remind them that there can be negative results too.
Binance’s recent short liquidation on BTC/USDT totaled $66.3 million, the largest for 2025. This event mirrors influential market volatility and the risks leveraged traders face. The swift removal of short positions altered market dynamics and highlighted the exchange’s role in managing risk effectively. Traders on Binance and elsewhere must consider such volatility when engaging with highly leveraged cryptocurrency trades.
