Article Details

Bullish CPI Shock Triggers 1,122% Jump in XRP Liquidation Imbalance

TL;DR

• Liquidation Imbalance: XRP recorded a 1,122% short‑side liquidation imbalance, with $70,180 wiped from shorts versus $6,270 from longs, signaling a severe mispositioning ahead of the CPI release.
• Macro Catalyst: Core CPI fell to 2.6% YoY, triggering a rapid shift in derivatives expectations and fueling a sharp upward move that trapped short sellers across XRP markets.
• Market Impact: Bitcoin and Ethereum saw larger total liquidations, but XRP’s structure was unique, acting as a liquidity proxy during the macro shock and raising questions about a potential move toward the $2.08 resistance.
  

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XRP ignited a dramatic derivatives shakeup after the latest CPI print came in cooler than expected, triggering a sharp macro pivot that blindsided short sellers. The move unfolded as Wall Street celebrated the softest Core CPI reading since 2021, sending S&P 500 futures to record highs and unleashing a violent liquidation wave across crypto markets. XRP became the standout asset in this macro‑driven surge, locking in a staggering 1,122% short‑side liquidation imbalance that exposed how aggressively traders had bet against the token ahead of the inflation release.

XRP Leads Liquidation Shock as Shorts Absorb Heavy Losses

According to CoinGlass data, the token saw $76,450 in liquidations within a single hour, but the composition of those losses is what stunned traders. Only $6,270 came from long positions, while $70,180 was wiped from shorts, creating an 11x imbalance that revealed how severely the market mispriced the immediate reaction to the CPI report. The sudden upward spike on the XRP chart confirmed that short sellers were caught leaning too heavily into downside momentum, setting the stage for a rapid short squeeze rather than a broad capitulation event.

Macro Catalyst: Core CPI Falls to 2.6% YoY

Minutes before the liquidation burst, the U.S. Bureau of Labor Statistics reported that Core CPI had fallen to 2.6% YoY, a reading below consensus expectations. This softer inflation print immediately shifted derivatives positioning across global markets. Traders began pricing in a more aggressive path for potential Fed cuts, which fueled a surge in bids for short‑term interest rate futures and spilled over into crypto assets that tend to react quickly to macro volatility.

Bitcoin and Ethereum Hit Harder in Total Liquidations

While XRP’s imbalance was the most extreme, Bitcoin and Ethereum absorbed the largest nominal liquidations, with $4.72 million and $3.39 million, respectively. Even so, XRP’s microstructure stood out, as its move reflected a targeted short squeeze rather than broad market deleveraging. This distinction underscored XRP’s recurring role as a liquidity proxy during macro‑driven swings.

Whether this liquidation shock sets the stage for a breakout above the $2.08 resistance now depends on how spot flows evolve after the CPI release. For now, one takeaway is clear: XRP’s short side was dismantled in real time, and the burn rate was significant enough to reset positioning across the derivatives landscape.