On August 12, the cryptocurrency market witnessed the second largest short squeeze of 2025, with approximately $66 million in short positions liquidated around the $4.62K level. This significant event resulted in substantial losses for bearish traders, underscoring the ongoing volatility in the crypto market. The liquidation reflects the heightened risks associated with short trading positions as market dynamics continue to shift unpredictably. Traders remain on edge, speculating about potential future squeezes and the impact on market participants.