The London Metal Exchange said it has suspended trading in its nickel market for the remainder of Tuesday, "following further unprecedented overnight increases in the three-month nickel price."

Nickel surged as much as 111% during the trading day in Asia, according to data from Bloomberg, and traded briefly above $100,000 a ton. The move was the largest ever on the LME, Bloomberg reported.

"The LME, in close discussion with the Special Committee, has been monitoring the LME market and the effect of the evolving situation in Russia and Ukraine," the exchange said in a statement. "It is evident that this has affected the nickel market in particular, and given price moves in Asian hours this morning, the LME has taken this decision on orderly market grounds."

Nickel prices have been soaring on supply fears related Russia's invasion of Ukraine. It closed with a gain of 66% on Monday. Russia produces 17% of the world's top-grade nickel, according to Bloomberg.

The spike in nickel prices and fears of a supply shortage has led to a massive short squeeze in the metal.

"Price action in the nickel market overnight suggests a sense of panic and the squeeze on commodity supplies is going nowhere soon," said Jeffrey Halley, senior market analyst at Oanda.

The LME said it was planning for the reopening of the nickel market, and "will announce the mechanics of this to the market as soon as possible.

"The LME will give consideration to a possible multi-day closure, given the geopolitical situation which underlies recent price moves. In this context, the LME will also make arrangements to deal with upcoming deliveries."