Solana surges past $116, liquidating over $18M in short positions

Solana’s SOL token ripped past $116 this week, catching short sellers in a painful squeeze that liquidated over $18 million in bearish positions. The move marks a continuation of a rally that began days earlier when SOL broke through $110 resistance for the first time in seven months.

The short squeeze, by the numbers

The damage to short sellers has been substantial. Over a single 24-hour period during the initial push to $112, approximately $36.72 million in SOL short positions were liquidated out of $38.21 million in total liquidations. That means shorts accounted for roughly 96% of all liquidated positions.

SOL first surged around 10.75% to 11% on September 18-19, hitting $112.28, its highest level in seven months. By September 21, the token was trading at $116.33, reflecting an additional 7.5% gain within 24 hours.

This pattern is textbook short squeeze mechanics. Traders borrow and sell an asset expecting prices to fall. When prices rise instead, they’re forced to buy back at higher prices to close their positions, which adds more buying pressure and accelerates the rally.

Futures markets tell the bigger story

Futures open interest for Solana climbed 18.44% during this rally, reaching approximately $7.01 billion. In one session, SOL futures trading volume hit $12.14 billion compared to just $1.49 billion in spot volume. Futures outpaced spot by more than 8 to 1.

Institutional products also saw notable activity during the rally, with BSOL trading volumes reaching $85 million intraday.

History repeating, with bigger numbers

This isn’t the first time SOL has punished short sellers in 2026. Back in May, a sharp rally past $90 triggered over $16 million in short liquidations. The current episode is significantly larger in scale, which reflects both higher prices and greater overall market participation in Solana derivatives.

What separates this rally from generic market beta is the sheer concentration of short liquidations. A 96% skew toward short liquidations isn’t normal. It suggests that a significant number of traders had built up bearish positions at lower levels, possibly expecting SOL to fail at resistance, and were caught completely off guard by the breakout.

For traders watching from the sidelines, the key metric to monitor is that futures-to-spot volume ratio. When it stays elevated above 8:1, it means the market is heavily leveraged and vulnerable to sharp reversals in either direction.

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