Full-glacier-thickness icebergs are frequently observed to capsize as they calve into the ocean. As they capsize they may collide with the glaciers’ termini; previous studies have hypothesized that such collisions are the source of teleseismic ‘glacial earthquakes’. We use laboratory-scale experiments, force-balance modeling and theoretical arguments to show that (1) the contact forces during these collisions are strongly influenced by hydrodynamic forces and (2) the associated glacial earthquake magnitudes (expressed as twice-integrated force histories) are related to the energy released by the capsizing icebergs plus a hydrodynamic term that is composed of drag forces and hydrodynamic pressure. Our experiments and first-order modeling efforts suggest that, due to hydrodynamic forces, both contact force and glacial earthquake magnitudes may not be directly proportional to the energy released by the capsizing icebergs (as might be expected). Most importantly, however, our results highlight the need to better understand the hydrodynamics of iceberg capsize prior to being able to accurately interpret seismic signals generated by iceberg collisions.