Bitcoin News Today: Crypto's $19B Crash Unveils Leverage and Transparency Crisis

The crypto market experienced its largest single-day liquidation event on October 10–11, 2025, with over $19 billion in leveraged positions wiped out as U.S. President Donald Trump announced 100% tariffs on Chinese imports$19B Crypto Liquidation Wipes Out 1.6M Traders in 24 Hours^[1]. The move triggered a global sell-off, sending Bitcoin from a record $125,000 to as low as $102,000 within hoursCrypto market hit by biggest liquidation in history: $19B wiped out ...^[2]. Altcoins fared worse, with some down 90%, as forced liquidations on centralized exchanges (CEXs) exacerbated volatilityCrypto Liquidation hits $19B as Trump’s China Tariff ... - Coinpedia^[3].

The crash was fueled by a combination of geopolitical risk, overleveraged bets, and technical vulnerabilities in crypto infrastructureMassive $19B Liquidation Hits Crypto Markets After …^[4]. Data from Coinglass showed 1.6 million traders liquidated within 24 hours, surpassing previous records like the $8.6 billion May 2021 crash$19 Billion Crypto Liquidation: How Trump’s 100% China Tariff Threat Sparked the Biggest Crash in History.^[5]. The panic was swift: within the first hour of Trump's Truth Social post, $7 billion in positions vanishedHyperliquid founder accuses CEXs of hiding user liquidation data^[6]. Hyperliquid, a decentralized exchange, recorded the largest single liquidation-a $203 million Ethereum tradeLargest Ever’ Crypto Liquidation Event Wipes Out 6,300^[7].

Bitcoin and Ethereum bore the brunt of the selloff. Bitcoin's market cap plummeted from $2.3 trillion to $2.22 trillion, while Ethereum dropped below $4,000Trump Crashes Crypto Markets With 100% Tariff On …^[8]. Altcoins like Solana and Dogecoin saw double-digit declines, with Solana losing nearly 18% and Dogecoin falling 24%Did Trump’s Tariff Trigger A Crypto Purge Or Just A …^[9]. The total crypto market cap shrank from $4.3 trillion to $3.74 trillion, erasing $560 billion in value100% Tariff on China: Market Crash, Cryp…^[10].

Exchange outages compounded the chaos. Binance, Coinbase, and Kraken faced delays and outages as trading volumes surged 140%Hyperliquid Founder Calls Out Binance and CEXs for Hiding …^[11]. Hyperliquid, however, maintained 100% uptime and reported zero bad debt, highlighting the resilience of on-chain infrastructure‘Largest Ever’ Crypto Liquidation Event Wipes Out 6,300^[12]. Jeff Yan, founder of Hyperliquid, criticized CEXs for underreporting liquidations, noting that platforms like Binance only log one liquidation per second-potentially masking a 100x underreporting during volatile periodsHyperliquid’s Jeff Yan Says Exchanges Are Masking True Market …^[13].

The event sparked debates about market transparency and leverage. Arthur Hayes, co-founder of BitMEX, attributed the crash to auto-liquidations on CEXs, where cross-margin collateral triggered a domino effect$19B Crypto Liquidation Wipes Out 1.6M Traders in 24 Hours^[1]. Brian Strugats of Multicoin Capital warned of contagion risks, stating that the fear of a U.S.-China trade war amplified existing leverage in derivatives marketsCrypto market hit by biggest liquidation in history: $19B wiped out ...^[2].

Despite the carnage, some traders capitalized on the turmoil. A whale on Hyperliquid shorted Bitcoin and Ethereum minutes before the crash, netting an estimated $190 million in profit‘Largest Ever’ Crypto Liquidation Event Wipes Out 6,300^[12]. Meanwhile, analysts like Edul Patel of Mudrex suggested the sell-off could create buying opportunities, citing historical rebounds after October correctionsCrypto market hit by biggest liquidation in history: $19B wiped out ...^[2].

The crash has reignited calls for regulatory reforms and margin adjustments in crypto marketsHyperliquid Founder Calls Out Binance and CEXs for Hiding …^[11]. As the industry grapples with the fallout, the event underscores the fragility of leveraged positions and the need for transparent, verifiable data in an increasingly interconnected financial systemHyperliquid’s Jeff Yan Says Exchanges Are Masking True Market …^[13].