Bitcoin Open Interest Collapses to 12%: Short Squeeze Over?

The migration away from crypto-margined futures marks a structural change in how leverage is collateralized, not simply a deleveraging event — the dominant venue for speculative positioning has effectively been hollowed out. That matters because crypto-margined contracts were the primary fuel for reflexive squeezes; their decline suggests the market's capacity for violent short-covering has diminished, even as leveraged activity persists elsewhere. The open question is whether this shift reflects a durable preference for cash-margined exposure or merely a pause in risk appetite.