Crypto short sellers crushed as market surges

Crypto markets soared on August 19, 2026, causing up to $2.9B in liquidations—mostly shorts—as Bitcoin and Ethereum rallied. U.S. Treasury bond buybacks and positive government crypto comments fueled the surge.

On August 19, 2026, the cryptocurrency market saw a dramatic surge following major macroeconomic announcements, leading to historic liquidations of short positions. Across multiple exchanges, total liquidations ranged from $1.3 billion to nearly $2.9 billion within 24 hours, with over 90% coming from short positions. Bitcoin and Ethereum led the rally, with Bitcoin climbing above $68,500 and Ethereum surpassing $2,000. Solana and other major cryptocurrencies also posted significant gains. The surge was primarily driven by the U.S. Treasury’s announcement to double long-term bond buybacks and remarks from President Donald Trump about potential government crypto purchases. These events triggered a feedback loop: rising prices forced heavily leveraged short positions to close, amplifying the upward momentum and resulting in a cascade of liquidations. Over 100,000 traders were affected, highlighting the risks of leveraged bearish bets during sudden positive news.