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The XRP short squeeze on Friday forced roughly $1.13 million in derivatives liquidations, with shorts accounting for about $1.02 million. Macro headlines on U.S.-China relations triggered a rapid move from $2.19 to $2.29, producing a concentrated short-covering spike across crypto markets.
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Short-side liquidations dominated: ~$1.02M vs. ~$104K long-side losses
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Price moved from $2.19 to $2.29 in an hour, a 4.42% vertical spike
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CoinGlass liquidation tracker reported $1.13M erased; BTC and ETH combined liquidations exceeded $39M
XRP short squeeze erased $1.13M in derivatives liquidations; read the data-backed breakdown and market context from COINOTAG. Stay informed — follow on-site coverage.
By COINOTAG — Published: 2025-10-17 | Updated: 2025-10-17
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What is an XRP short squeeze?
XRP short squeeze describes a rapid, forced covering of short positions that drives price higher as traders buy to close losing bets. The recent event erased $1.13 million in derivatives, with short positions responsible for ~90% of the liquidations, producing a steep, short-duration rally in XRP.
Why did XRP shorts get liquidated so heavily?
Liquidations were concentrated after macro headlines on U.S.-China relations reduced perceived near-term geopolitical tail risk. Data from CoinGlass (liquidation tracker) shows ~ $1.02 million in short-side liquidations versus ~$104,000 on the long side — a roughly 1,000% imbalance. Simultaneously, Bitcoin and Ethereum derivatives recorded combined liquidations in excess of $39 million, indicating broad market volatility and cross-asset positioning pressure.
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The Friday session functioned as a textbook squeeze: shorts were heavily levered into a falling market, then were forced to buy back as price briefly reversed. For XRP, the move from $2.19 to $2.29 within an hour — a 4.42% intrahour gain — aligned with sudden risk-on flows that compressed the short book.
Source: CoinGlass
Market context and data-driven analysis
Short-covering episodes are amplified when leverage is high and liquidity is shallow. Official liquidation tallies reported by CoinGlass quantify the impact: total derivatives liquidations of $1.13 million for XRP, with shorts accounting for nearly $1.02 million. That imbalance highlights an overcrowded short trade that had little room to adjust when macro headlines shifted.
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A COINOTAG derivatives analyst observed: “The size and speed of the move indicate concentrated short exposure with limited depth at the top of the book. Macro headlines provided a catalyst, but the liquidation structure is what converted a news impulse into a sharp price spike.”
Frequently Asked Questions
How many XRP shorts were liquidated on Friday during the squeeze?
Approximately $1.02 million in short positions were liquidated, out of $1.13 million total XRP derivatives liquidations reported by CoinGlass. Long-side liquidations were about $104,000, underscoring the pronounced short-side pressure during the event.
Did U.S.-China headlines directly cause the XRP spike?
Yes. Market participants reacted to updated tone from U.S.-China discussions — including confirmation of a high-level meeting and signaling that extreme tariff scenarios were less likely — which eased risk concerns and prompted rapid inflows into risk assets, including XRP, triggering short covering.
Key Takeaways
- Dominant short liquidations: Short positions made up roughly 90% of XRP’s $1.13M derivatives liquidations.
- Macro catalyst: Shifts in U.S.-China trade rhetoric triggered risk-on flows that converted into a concentrated squeeze.
- Cross-market volatility: BTC and ETH liquidations topped $39M combined, indicating broader derivatives stress that amplified XRP’s move.
Conclusion
The Friday XRP short squeeze was a concentrated derivatives event driven by an imbalance of leveraged short exposure and a favorable macro headline shift. CoinGlass’s liquidation data provides a clear, fact-based account: $1.13 million wiped out, with shorts bearing the brunt. COINOTAG will continue monitoring derivatives flows and macro developments to provide timely, data-driven coverage — stay tuned for updates.
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Source: https://en.coinotag.com/xrp-short-liquidations-may-indicate-1000-imbalance-and-short-squeeze-after-2-19-2-29-spike-amid-u-s-china-tensions/