Crypto Liquidations Near $2 Billion as US Treasury Debt Buyback Triggers Short Squeeze

BitcoinWorld Crypto Liquidations Near $2 Billion as US Treasury Debt Buyback Triggers Short Squeeze Crypto liquidations approached $2 billion within 24 hours as a US Treasury debt buyback announcement triggered a sharp short squeeze across major digital assets, according to market data as of the latest reporting period.

Market Impact and Immediate Reactions The unexpected move by the US Treasury to repurchase outstanding debt injected fresh liquidity into financial markets, prompting a rapid repricing of risk assets, including cryptocurrencies.

Bitcoin and Ethereum led the surge, with prices jumping more than 8% and 10% respectively in a matter of hours, forcing leveraged short positions to cover at a loss.

Data from major derivatives exchanges showed that long and short liquidations were heavily skewed toward shorts, accounting for roughly 70% of the total. This imbalance amplified the upward momentum, as automated selling of collateral added to buying pressure.