We extend the Matomäki-Radziwi l l theorem to a large collection of unbounded multiplicative functions that are uniformly bounded, but not necessarily bounded by 1, on the primes. Our result allows us to estimate averages of such a function f in typical intervals of length h(log X) c , with h = h(X) → ∞ and where c = c f ≥ 0 is determined by the distribution of {|f (p)|}p in an explicit way. We give two applications. Our first application shows that the classical Rankin-Selberg-type asymptotic formula for partial sums of |λ f (n)| 2 , where {λ f (n)}n is the sequence of normalized Fourier coefficients of a primitive non-CM holomorphic cusp form, persists in typical short intervals of length h log X, if h = h(X) → ∞.Our second application shows that the (non-multiplicative) Hooley ∆-function has average value ≫ log log X in typical short intervals of length (log X) 1/2+η , where η > 0 is fixed.