Ethereum, ADA, and Dogecoin Spark $800M in Short Liquidations as Crypto Market Explodes

In a sudden and aggressive rally that took traders by surprise, Ethereum (ETH), Cardano (ADA), and Dogecoin (DOGE) triggered an avalanche of liquidations, wiping out over $800 million in short positions on May 9 — the largest single-day total since 2023.

According to CoinGlass, more than 84% of liquidations were shorts, signaling how deeply the market underestimated the bullish momentum driving this explosive move.

Ethereum Leads the Charge With a 20% Pump

The spotlight was firmly on Ether, which surged over 20% in 24 hours, marking one of its biggest one-day gains in the past year. Ethereum soared past key resistance levels, pushing its price from the $3,800 range to above $4,560, spurred by a wave of institutional interest and fresh optimism in regulatory clarity following international trade developments.

“This ETH breakout feels different — it’s driven by both volume and narrative,” said on-chain analyst Emma Tucker. “We’re seeing clear accumulation from whales and ETF speculation ramping up again.”

Altcoins Ride the Wave: ADA, DOGE, SOL Follow

Following Ethereum’s rally, Cardano (ADA) and Dogecoin (DOGE) posted gains of 11.3% and 13.2%, respectively. Meanwhile, Solana (SOL), XRP, and BNB also climbed between 7% and 10%, pushing the total market cap above $2.5 trillion once again.

This movement coincided with rumors of a finalized US–UK digital asset trade deal, which appears to have sparked bullish sentiment across the board. Speculators flooded into leveraged long positions, while those shorting the market were caught in what many called “the May massacre.”

Binance and OKX: The Epicenters of Liquidation

The heaviest liquidation volumes were concentrated on major exchanges Binance and OKX, which together accounted for over $500 million in liquidated positions.

“Traders betting against this rally just got obliterated,” noted crypto risk manager Felix Hart. “We’ve seen cascading liquidations, margin calls, and even a few flash crashes on lesser-known altcoins.”

For many leveraged traders, the pain was real and fast. As the market ripped higher, shorts were forced out in waves, exacerbating volatility and driving further upside.

Price Table

Why This Matters: Market Sentiment Reverses

Liquidations of this scale can signal a critical shift in sentiment. In this case, the rapid unwinding of bearish positions may indicate a fresh bullish cycle, particularly for Ethereum and large-cap altcoins.

Moreover, such events often mark a sentiment reversal point, where fear begins to give way to FOMO (fear of missing out), especially among retail investors who were previously sidelined by uncertainty around interest rates and regulatory crackdowns.

Traders Learn a Costly Lesson

The massive wave of short liquidations highlights the inherent risk of leverage in crypto trading. While margin trading can amplify gains, it equally magnifies losses when markets move quickly against positions. In this case, overleveraged bears were caught flat-footed as ETH and altcoins surged.

“This was a textbook short squeeze,” said veteran trader Alan Moore. “It’s a brutal reminder that betting against momentum can end in seconds — and cost millions.”

Final Thoughts: The Market Awakens

This week’s $800M liquidation event is a stark reminder of the crypto market’s unpredictability and power. Ethereum, ADA, and DOGE’s explosive moves didn’t just liquidate shorts—they revived market enthusiasm.

With Ethereum breaking out, ADA showing strength, and DOGE regaining its meme-fueled momentum, all eyes are now on what comes next. As one trader posted on X (formerly Twitter),

“Crypto winter didn’t end with a whimper, it ended with a liquidation boom.”

What triggered the $800M in liquidations?

A sudden rally in Ethereum and other altcoins led to mass short liquidations as prices surged unexpectedly.

Which exchanges saw the most liquidations?

Binance and OKX were responsible for over $500 million in short position liquidations.

Why did Ethereum rise so sharply?

Factors include whale accumulation, ETF speculation, and macro developments like the US–UK crypto trade pact.

How much did ADA and DOGE gain?

ADA rose over 11%, and DOGE jumped more than 13% in 24 hours.

Is this the start of a new crypto bull run?

While not confirmed, this type of liquidation-driven rally often marks a shift in market momentum and sentiment.

Glossary of Key Terms

Short Liquidation: A forced closure of a bearish (short) position when the market moves against it, often resulting in losses.

Leverage: Borrowing capital to increase exposure in a trade. Higher leverage means higher risk.

Altcoins: Cryptocurrencies other than Bitcoin, such as Ethereum , ADA, DOGE, and SOL.

Short Squeeze: A rapid price surge that forces traders with short positions to buy back assets at higher prices, further driving up the price.

FOMO: Fear of Missing Out — a common driver of retail buying during bullish market trends.

Whales: Individuals or entities holding large amounts of a cryptocurrency, capable of influencing the market.

References and Sources

CoinDesk

CoinGlass

Yahoo Finance

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