Cryptocurrency derivatives markets were rattled on 18 August after Bitcoin sank below $115,000, triggering a cascade of forced liquidations across major exchanges. Analytics firm CoinGlass estimated that about $550 million of positions were cleared in the 24-hour stretch to midday New York time, with roughly $486 million of the total coming from bullish bets. More than 131,000 traders were affected, and at least $100 million in longs were erased during the most volatile hour. The largest single loss was a $4.03 million Bitcoin trade on Binance. Bitcoin briefly touched $114,955—about 7% lower than four days earlier—before stabilising just above $115,000. Ethereum fell below $4,300, helping push liquidations tied to the token to roughly $206 million. The sell-off coincided with an unprecedented build-up of bearish positions in Ether futures. CME Group data show a record net short of 18,438 contracts, while market-wide metrics indicate speculators are holding the largest leveraged short stake in the cryptocurrency’s history. Analysts warn that the crowded trade heightens the risk of a short squeeze if prices rebound. Market observers attributed the volatility to profit-taking after recent all-time highs, lingering geopolitical tension and caution ahead of Federal Reserve Chair Jerome Powell’s speech later this week. For now, traders appear to be scaling back leverage while awaiting clearer macro-economic signals.