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Shiba Inu prices soared 12%, and a $3.1 billion short squeeze in cryptocurrency shook the market

2026-08-21 00:43:08
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Shiba Inu rose more than 12% to US$0.0000502, as buyers strengthened its recovery amid a rebound in the broader cryptocurrency market.

The total amount of cryptocurrency clearing reached US$3.38 billion, of which US$3.1 billion were short positions, and the short positions were forcibly closed, which brought additional buying pressure.

Regulatory developments boosted market sentiment, while UEX US expanded access to SHIB through transactions, payment options, loans and investor rewards.

Shiba Inu rose 12%, as US$3.1 billion short cryptocurrency squeeze shook the market.

Shiba Inu rose more than 12%, and buyers pushed SHIB to the important US$0.00005 price level. This trend has been accompanied by a strong rally in the cryptocurrency market, punishing traders for holding leveraged short positions. SHIB climbed from US$0.0000443, hit an intraday high of US$0.0000502, and then traded around US$0.0000495, with its seventh-day performance showing an increase of about 10%. More importantly, the broader market recorded a $3.1 billion short liquidation in the rally. This figure is the largest wave of forced short liquidations since records began in 2021.

The huge liquidation imbalance has become an important part of the market's upward momentum. Traders betting on falling cryptocurrency prices face forced liquidations due to rising prices. Therefore, covering these positions requires additional buying, which increases buying pressure across the market. SHIB benefits from this broader momentum, with its price approaching $0.00005.

US$3.1 billion short squeeze led the crypto market rebound

According to CoinGlass data, a total of 192,002 traders had a total of approximately US$3.38 billion in cryptocurrency clearing. Short positions accounted for approximately $3.1 billion of the total, while long liquidations were approximately $275.45 million. It is worth noting that this short liquidation figure exceeds the comparable total recorded during the major cryptocurrency crash in October 2025. That incident resulted in an overall liquidation of more than $19 billion, with short positions of approximately $2.47 billion. However, the latest events have created a completely different market structure, as bear traders bear most of the losses. This imbalance has helped strengthen upward pressure, while the cryptocurrency market itself is already rising. Therefore, the 12% increase in Shiba Inu Co. not only reflects the buying activity surrounding the memein itself. The broader liquidation event provides strong momentum as leveraged short positions disappear in the cryptocurrency market.

Regulatory developments support market sentiment

Advances surrounding U.S. cryptocurrency regulation have also contributed to increased sentiment in the digital asset space. Lawmakers are considering market structure legislation that aims to create clearer rules for the cryptocurrency industry. Senate Banking Committee Chairman Tim Scott also expressed confidence in the prospects of the CLARITY Act at the SALT meeting. He said the bill could move forward in September and a procedural vote was expected on September 15. In addition, cryptocurrency exchange UEX US has expanded the availability of SHIB by adding SHIB/USDT transactions. The platform also introduces SHIB-backed loans, payment options and incentive plans that provide 4.5% annualized returns. Users can purchase SHIB on the exchange via PayPal, bank transfer and bank card payment. These new features provide more channels for traders seeking to obtain this dog-themed cryptocurrency.

Conclusion

The 12% increase in Shiba Inu has made the US$0.00005 area within reach again amid a strong rebound in the cryptocurrency market. The $3.1 billion short squeeze remains the core catalyst, while regulatory developments and SHIB's broader access channels provide additional support.

Disclaimer:

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