Bitcoin short squeeze unfolds as futures open interest collapses

Multiple outlets report a collapse in Bitcoin futures open interest that triggered a short squeeze as leveraged short positions were forced to cover, amplifying upward price pressure. The rapid deleveraging reduced derivatives liquidity and left the market more sensitive to spot flows and stop hunts. At the same time a Zcash rally has widened its mining-revenue lead over Bitcoin (and AI HPC), signaling miners can earn comparatively more elsewhere and may reallocate hashing power. The combined effect is a deleveraged, higher-volatility environment for BTC where rallies can be sharp but potentially less durable and miner economics may add asymmetric downside risk.