Bitcoin’s leverage-fueled rally faces liquidation risks and shifting OG holder behavior

Bitcoin’s latest advance has been powered largely by leverage and a major short squeeze that, according to Glassnode, marked the biggest short-liquidation event among the top 500 cryptocurrencies since 10 October 2025. As OG holders slow their selling and whales hedge by rotating into shorts while retail adds leveraged longs, the rally appears more fragile and vulnerable to a corrective phase if funding cools and leverage unwinds.