The XRP derivatives market recently experienced an extraordinary event, with short traders facing significant liquidation pressure in what has been described as a 'bear bloodbath'. Data from CoinGlass, a liquidation tracker, revealed that a total of $1.13 million was erased, with an overwhelming $1.02 million attributed directly to short positions. This figure represents a staggering 1,000% more than long-side liquidations, which barely reached $104,000, highlighting a severe market imbalance.

This dramatic shift was visibly triggered on the price chart, as XRP surged from $2.19 to $2.29 within a single hour, reclaiming 4.42% through a clean vertical spike. This movement mirrored similar patterns observed on the Bitcoin and Ethereum charts, despite their combined liquidation tallies exceeding $39 million. The event was characterized as a textbook short squeeze, where one side of the trading book evaporated, leaving no opportunity for repositioning by traders caught on the wrong side.

The underlying catalyst for this market activity was an amplification of macro signals, specifically evolving developments in U.S.-China trade relations. Recent headlines indicated a more conciliatory tone from the U.S. government towards Beijing, including confirmation of a top-level meeting scheduled for two weeks, a reduced 11% probability of 100% tariffs by November 1, and explicit denials that a 'trade war' was actively underway. These geopolitical developments collectively fed into the risk markets' inherent instinct to re-engage with financial assets, a sentiment that extended to the cryptocurrency sector.

For XRP price in particular, this created a very specific scenario. Short sellers had overloaded their positions betting on declining prices, only to have the market floor pulled out from under them as external headlines brightened the macro economic backdrop. The outcome was not merely a price bounce, but a full-fledged short squeeze, conspicuously marked by the 1,000% liquidation imbalance that prominently featured in the derivatives market's 'shopping window'.