Short sellers betting on a prolonged escalation in the Iran conflict were dealt a heavy blow, losing $427 million in just 24 hours as bitcoin surged past $72,000 following the ceasefire announcement.
Bearish positions built up over several days unwound rapidly within roughly two hours late Tuesday, after Donald Trump confirmed a two-week U.S.–Iran ceasefire on Truth Social shortly before his 8 p.m. ET deadline. Bitcoin quickly spiked above $72,700, catching downside bets offside.
The rally triggered $595 million in total crypto liquidations across 118,489 traders, according to CoinGlass. Of that, $427 million came from short positions compared to $168 million in longs, underscoring how heavily traders were positioned for further downside.
The largest single liquidation was an $11.79 million BTC-USDT short on Binance. Bitcoin accounted for $245 million in liquidations, followed by ether at $126 million. In commodities-linked crypto markets, tokenized Brent Crude futures on Hyperliquid saw $33 million wiped out, while another $42 million came from West Texas Intermediate contracts as crude prices plunged more than 10%.
Oil—previously among the most liquidated assets during the conflict—quickly reversed direction. Brent fell to around $99 per barrel and WTI to roughly $95, flipping positioning across energy trades as geopolitical risk eased.
The bulk of the liquidations occurred in a tight 12-hour window. Of the $595 million total, $508 million was erased خلال that period, with $398 million coming from shorts—marking the most aggressive short squeeze since early March, when bitcoin rallied on initial ceasefire speculation.
Elsewhere, altcoins were also caught in the unwind. Solana’s SOL recorded $19.6 million in liquidations, ZEC saw $13.4 million, and XRP posted smaller losses alongside a broader wave of selling. Even tokenized gold and silver positions were hit as commodities repriced the fading war premium.
The ceasefire itself remains conditional. Trump described it as a “double-sided ceasefire,” stating that U.S. forces had already achieved their objectives. Iran confirmed the pause but added uncertainty around the Strait of Hormuz, noting that tanker flows would resume for two weeks subject to coordination with its military and technical constraints.
Heading into the announcement, sentiment had turned extremely bearish. The Fear and Greed Index fell to 8 on Sunday, continuing a stretch of deeply pessimistic readings throughout the conflict. Santiment data also showed bearish social media posts outnumbering bullish ones, highlighting a crowded downside trade.
Bitcoin’s rally to $72,700 now places it at the upper boundary of the $65,000–$73,000 range that has defined price action during the conflict. Whether this move marks a true breakout or another false signal will likely depend on how the two-week ceasefire develops.
