Explosive XRP Short Squeeze Coming? Top Trader Shares Opinion

XRP short positions on Bitfinex have reached a historic level. Crypto commentator Xaif (@Xaif_Crypto) reported a 652% surge, pushing short positions to 468.2 million.

Digital Asset Investor (@digitalassetbuy) highlighted the data in a recent video, calling the setup one of the largest short position buildups in XRP history.

The scale of this positioning carries real significance for traders watching XRP.

Explosive XRP Short Squeeze? pic.twitter.com/Nyr5oG2Zoz

— Digital Asset Investor (@digitalassetbuy) November 5, 2026

What a Short Squeeze Is

A short squeeze happens when traders who bet against an asset are forced to buy it back because the price moves against them. Those traders open short positions expecting the price to fall. When it rises instead, their losses grow.

To cut those losses, they buy the asset to close their trades. That buying pushes the price higher. More short sellers face pressure. More short sellers buy to cover. The cycle accelerates.

The more short positions exist, the more fuel a short squeeze has. At 468.2 million, XRP’s current short interest on Bitfinex creates a substantial setup.

A Historic Level of Short Interest

Xaif Crypto stated that “if the price moves against them, the squeeze could be explosive.” Digital Asset Investor echoed that sentiment, saying he would “love to see an XRP short squeeze,” calling it “classic.”

The concentration of short positions at this level is significant for one key reason. All 468.2 million contracts need to close. If XRP’s price continues to rise, those exits become forced rather than voluntary. Forced buying at scale produces fast, sharp price increases. The short squeeze becomes self-reinforcing.

XRP is trading at $1.21, down more than 7% in 24 hours. Short sellers who opened positions near the November 4 surge are currently in profitable territory. However, a price reversal could force that unwind quickly and trigger the short squeeze.

The Opportunity Traders are Watching

A short squeeze of this scale would generate significant upside momentum for XRP. Traders on the long side of the trade stand to benefit as forced buying pushes the asset’s price higher. When a large number of traders make the same bet at the same time and the price moves against them, the unwind accelerates quickly.

Digital Asset Investor’s enthusiasm for a potential XRP short squeeze reflects what many traders are now watching closely. Historic short interest combined with upward price movement could produce an aggressive short squeeze event.