SHIB Short Squeeze Frenzy Wipes Out Billions as Open Interest Surges

After a four-day decline from November 19 to 22, Shiba Inu (SHIB) staged a sharp reversal, climbing 3.93% in the past 24 hours to reach $0.000007952. Earlier on Sunday, the token briefly touched $0.000008, catching bearish traders off guard and triggering a wave of liquidations.

The price rebound led to massive unwinding of short positions, accounting for roughly 80% of the total wipeout in the last 24 hours. Data from CoinGlass indicates total liquidations at $57,200, with short positions alone totaling $46,210, or 5,835,332,744 SHIB. Long liquidations were markedly smaller, at $10,990, demonstrating the intensity of the short squeeze pressure.

Coinciding with SHIB’s rebound, open interest (OI) – the total number of unsettled derivative contracts – surged back into positive territory. OI is a key metric reflecting market liquidity and activity. CoinGlass reports that SHIB’s open interest increased by 5% in 24 hours, reaching $78.57 million, signaling heightened trader engagement.

While SHIB and other major cryptocurrencies traded in green, analysts caution that it is too early to confirm a sustained trend reversal. The market is still seeking stability after the sell-off in October. Observers will monitor whether this recovery is a temporary relief rally or the start of a more durable uptrend in the coming days.