Roughly $180 million in short positions were wiped out across the crypto market in a 30-minute window, delivering the kind of sudden, violent squeeze that makes leveraged trading feel less like a strategy and more like a coin flip.

The liquidation cascade hit as Bitcoin pushed through key price levels, forcing traders who had bet on further downside to cover their positions. When that many shorts get liquidated at once, the buying pressure from forced closures compounds on itself, creating a feedback loop that accelerates the move upward.

How a liquidation cascade works

When the price moves against a short position beyond its margin threshold, the exchange automatically closes it by buying the asset. That buying…