Shiba Inu (SHIB) Up 12% as $3 Billion Short Squeeze Fuels Crypto Market Rally

Shiba Inu rose more than 12% after several catalysts sent crypto-related assets higher. The crypto market suddenly sprang back to life, unleashing $3.1 billion in short liquidations, the largest in records dating back to 2021.

At the time of writing, Shiba Inu was trading at $0.00000495, extending yesterday's surge from a low of $0.00000443. The dog-themed token briefly touched an intraday high of $0.00000502 early Thursday before retreating slightly.

Shiba Inu is trading higher by 10% over the last seven days amid an ongoing market rally boosted by an appeal to Congress to pass crypto market-structure legislation following the White House's high-stakes meeting with crypto industry leaders, as well as signs of greater liquidity in the Treasury market.

There are also indications that the Clarity Act may finally be going through the Senate. At the SALT conference on Tuesday, Tim Scott, who oversees the Banking Committee, said that the Clarity bill had a high chance of advancing in September, with a procedural vote expected for September 15.

Cryptocurrency exchange UEX US has listed $SHIB in fresh listing news. UEX US now offers $SHIB/USDT trading, along with a rewards scheme with 4.5% annual returns, loans secured with $SHIB as collateral, and purchases via PayPal, bank transfers, and card payments. As $SHIB starts to bounce back, the number of ways to trade, hold and use it grows.

$3.1 billion short liquidations hit market

Total liquidations reached $3.38 billion across 192,002 traders, according to CoinGlass. Shorts accounted for the majority of this figure, coming in at $3.1 billion to mark the largest wave of forced short closures in records going back to 2021.

The significance of this figure becomes clear when compared with last October. The October 10, 2025 flash crash resulted in over $19 billion in liquidations in a single day, the largest deleveraging event in crypto history. Shorts accounted for $2.47 billion at the time. Wednesday's short liquidations were larger, but without the carnage on the long side. Longs totaled $275.45 million.