Solana surges past $116, liquidating over $18M in short positions

Solana’s SOL token ripped past $116 this week, catching short sellers in a painful squeeze that liquidated over $18 million in bearish positions. The move marks a continuation of a rally that began days earlier when SOL broke through $110 resistance for the first time in seven months. The short squeeze, by the numbers The damage to short sellers has been substantial. Over a single 24-hour period during the initial push to $112, approximately $36.72 million in SOL short positions were liquidated out of $38.21 million in total liquidations. That means shorts accounted for roughly 96% of all liquidated positions. SOL first surged around 10.75% to 11% on September 18-19, hitting $112.28, its highest level in seven months. By September 21, the token was trading at $116.33, reflecting an additional 7.5% gain within 24 hours. This pattern is textbook short squeeze mechanics. Traders borrow and sell an asset expecting prices to fall. When prices rise instead, they’re forced to buy back at higher prices to close their positions, which adds more buying pressure and accelerates the rally. Futures markets tell the bigger story Futures open interest for Solana climbed 18.44% during this rally, ...