On September 21, 2026, a short squeeze carried the crypto market to its highest level in eight months. The number that matters most, however, is not on the price board: while exchanges were force-closing bearish bets, open interest in the futures market did not fall. It rose. The market did not shed risk, it reshuffled it. Anyone running leverage should recalculate three things tonight: funding costs, their own liquidation price, and the question of which legal framework their position actually sits under.
Short squeeze and $648 million in liquidations: what happened in the futures market
A short squeeze is a chain reaction. Once the price climbs past the pain threshold of leveraged sellers, exchanges close their positions automatically. That closing is itself a purchase, which pushes the price higher and catches the next group.
That is exactly what played out on Monday. CoinDesk puts the value of the short positions that were force-closed at $648 million and reports at the same time that open interest across the whole market c...
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