Solana's SOL token rallied past $116 this week, catching short sellers in a squeeze that liquidated over $18 million in bearish positions. The move continued a rally that began when SOL broke through $110 resistance for the first time in seven months.
Short Liquidations Spike
The liquidation damage was concentrated among short sellers. During a 24-hour period when SOL pushed to $112, approximately $36.72 million in SOL short positions were liquidated out of $38.21 million in total liquidations across all assets, meaning shorts accounted for roughly 96% of all liquidated positions.
SOL first surged approximately 10.75% to 11% on September 18-19, reaching $112.28, its highest level in seven months. By September 21, the token traded at $116.33, reflecting an additional 7.5% gain within 24 hours.
Futures Market Activity
Solana futures open interest climbed 18.44% during the rally, reaching approximately $7.01 billion. In one session, SOL futures trading volume reached $12.14 billion compared to $1.49 billion in spot volume, an 8-to-1 ratio. Institutional products also saw activity, with BSOL trading volumes reaching $85 million intraday.
Scale of Liquidations
The current episode follows a May rally that triggered over $16 million in short liquidations past $90. The recent liquidations are substantially larger in scale, reflecting both higher prices and greater market participation in Solana derivatives. The 96% concentration of liquidations toward shorts is atypical and suggests traders had built bearish positions at lower levels and were caught off guard by the breakout.
