The cryptocurrency market witnessed a sharp volatility event on July 10, 2026, as Bitcoin briefly surged past the $80,000 threshold, triggering over $116 million in forced liquidations within just one hour. Short positions bore the brunt of the losses, with $114 million wiped out, reflecting a powerful short squeeze fueled by sudden bullish momentum.
Short Squeeze Intensifies: $1.14B in Shorts Liquidated in One Hour
According to on-chain data, the moment Bitcoin touched $80,000, a large number of leveraged short positions were automatically closed. The concentrated liquidation event unfolded within 60 minutes, with short positions accounting for 98.3% of total liquidations. Only about $2 million came from long positions. This suggests that the market had accumulated a significant short bias, and Bitcoin's rapid breakout forced those positions to unwind en masse, further accelerating the price rally.
Comparable liquidation events have occurred recently. Just two days earlier (July 8), the market saw a $378 million liquidation in a single hour, with longs suffering heavy losses. The reversal in liquidation direction highlights the rapid shift in market sentiment.
Whale Activity: Bears Forced to Cover and Flip Long
Prior to the price breakout, a whale investor on the Hyperliquid platform closed a $13.1 million Bitcoin short position and reversed to a long, which was seen as a precursor to the move. Additionally, a $74 million short position established on May 25 failed to survive the latest surge and was likely liquidated.
As of press time, Bitcoin is trading around $80,000 with high volatility, failing to extend gains. Earlier reports had warned of retail panic and a potential drop to the $76,000 support level, but the actual trajectory proved much stronger. Analysts suggest that if Bitcoin stabilizes above $80,000, the next resistance zone lies between $82,000 and $85,000; on the downside, $76,000 remains key support.
Market Sentiment and Risk Warnings
This liquidation event once again underscores the risks of leveraged trading in crypto. In just one hour, over $100 million in positions were wiped out, devastating for leveraged speculators who bet on the wrong direction. While the near-term bias is bullish, volatility can reverse abruptly, and traders should prioritize risk management and position sizing.
(Data sources: CryptoComLearn / Phemex News)