UPDATE: Crypto open interest rose 7.6% in the latest rally as roughly $648 million in shorts were liquidated, drawing fresh leverage into the market

Crypto derivatives positioning tightened as open interest rose 7.6% alongside roughly $648 million in short liquidations, indicating a squeeze-driven leg higher and renewed leverage entering the market. The combination typically increases near-term volatility and sensitivity to follow-through flows, as higher leverage can amplify both continuation moves and abrupt reversals if positioning becomes crowded.