XRP traders faced a dramatic liquidation imbalance on October 1, 2025, as short sellers were hit hard. Over a four-hour period, $2.45 million of the $2.61 million in liquidated positions were from shorts, while longs accounted for just $166,000. This resulted in a 1,475% imbalance favoring bullish positions. The surge in XRP's price above $2.90 was the catalyst for the wave of short liquidations, with the next resistance level identified at $3.10.