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UAE Accumulates $900M in Bitcoin as $736M Shorts Liquidated

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TLDR:

  • UAE reportedly holds over $900 million in Bitcoin during recent market weakness.
  • $736 million in Bitcoin shorts were liquidated in a single trading move.
  • The event marked the largest short squeeze since September 2024.
  • Crowded bearish positioning created rapid forced buying pressure.

 

Bitcoin markets shifted sharply as fresh capital and forced liquidations changed positioning across exchanges. The United Arab Emirates now holds over $900 million worth of Bitcoin, while roughly $736 million in short positions were liquidated in a single move.

UAE Expands Bitcoin Holdings as Market Reprices Risk

A post by Vivek Sen stated that the UAE now owns over $900 million worth of Bitcoin. The post framed the purchase as oil capital moving into digital assets during market weakness.

The timing of the reported accumulation aligns with broader volatility in crypto markets. Bitcoin had faced sustained pressure as derivatives traders leaned bearish. However, sovereign-level exposure signals continued institutional interest despite short-term uncertainty.

The UAE’s reported holdings reflect a growing trend among capital-rich regions seeking digital asset exposure. While price action remained constrained, accumulation during dips often indicates long-term positioning rather than short-term speculation.

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Moreover, this development comes as global liquidity conditions fluctuate. Therefore, sovereign participation adds a structural layer to market demand. It also reinforces Bitcoin’s position as a macro-sensitive asset.

Although the tweet did not provide acquisition timelines, the reported figure places the UAE among notable state-level holders. As a result, market participants are watching closely for further confirmation or expansion of such holdings.

$736M Short Liquidation Triggers Forced Buying

CryptosRus reported that $736 million in Bitcoin shorts were liquidated in one move. The post described it as the largest short liquidation event since September 20, 2024, when liquidations reached about $773 million.

Notably, the price move that triggered the liquidations was not extreme. This suggests bearish positioning had become crowded across derivatives markets. Funding rates had skewed toward shorts, indicating traders were leaning heavily against price recovery.

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When short positions are liquidated, exchanges automatically buy back Bitcoin to close those trades. This creates forced demand, often pushing prices higher in a reflexive cycle. As more shorts close, upward pressure can accelerate quickly.

According to the post, derivatives traders had weighed on price while spot demand remained muted. However, once liquidity shifts, crowded positions tend to unwind rapidly. That dynamic can change short-term momentum within hours.

The latest liquidation wave highlights the sensitivity of Bitcoin to positioning imbalances. Even moderate spot demand can amplify price moves when derivatives exposure becomes stretched.

Together, sovereign accumulation and forced short covering have altered the near-term market structure. While volatility persists, positioning data now reflects a market recalibrating after heavy bearish exposure.

 

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Crypto World

Kalshi Faces Lawsuit Over Khamenei Prediction Market

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Court, Kalshi, Prediction Markets

A class action lawsuit has been filed against prediction market Kalshi, alleging that the death carveout in the “Ali Khamenei out as Supreme Leader” market was not properly disclosed to users and that the platform failed to pay out winning trades.

The plaintiffs said that the death carveout policy was “not incorporated into the user-facing rules summary,” and was not displayed in a way that would notify a “reasonable consumer” of the policy or its effects.

“Defendants, themselves, later acknowledged that their prior disclosures were ‘grammatically ambiguous,’” the lawsuit filing said.

Court, Kalshi, Prediction Markets
The class action lawsuit against Kalshi. Source: Court Listener

Kalshi voided trading positions for the market after the death of Khamenei, the former Iranian Supreme Leader, was confirmed, meaning the market did not resolve to a “yes.”

“We don’t list markets directly tied to death. When there are markets where potential outcomes involve death, we design the rules to prevent people from profiting from death,” Kalshi co-founder Tarek Mansour said.

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Court, Kalshi, Prediction Markets
Source: Tarek Mansour

The plaintiffs characterized the carveout policy as “predatory” and an “unfair” business practice for this specific market. The lawsuit said:

“With an American naval armada amassed on Iran’s doorstep and military conflict not merely foreseeable but widely anticipated, consumers understood that the most likely, and in many cases the only realistic, mechanism by which an 85-year-old autocratic leader would ‘leave office’ was through his death. Defendants understood this as well.”

Mansour also announced reimbursements for users affected by the carveout policy, calculated using the “last traded price” for the market before the death of Khamenei was confirmed. The reimbursement policy also drew significant pushback from users. 

The plaintiffs in the lawsuit say that the methodology and precise timestamps used to calculate the “last traded price” for the prediction market were not disclosed or transparent. 

Related: Kalshi bans US politician over alleged insider trading violation

Kalshi co-founder fires back against lawsuit claims

Mansour maintained that Kalshi was simply adhering to its policy of not allowing “death markets” and said the policy was clearly stated in the market rules.

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Court, Kalshi, Prediction Markets
Source: Tarek Mansour

“Kalshi made no money here and even reimbursed all losses out of pocket. Not a single user walked away losing money from this market,” he said.

The incident came amid trading volumes on prediction markets surging to record highs in 2026, as the platforms gain popularity.

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