Bitcoin News Today: Crypto's House of Cards Collapses: $1.19B Vanishes in 24-Hour Liquidation Wave

The crypto market experienced its largest single-day liquidation event on October 10, 2025, as over $1.19 billion in leveraged positions were wiped out, driven by a confluence of geopolitical tensions and technical breakdowns. The collapse was fueled by U.S. President Donald Trump's threats of steep tariffs on Chinese goods, which triggered a broad sell-off across crypto and equities. Ether (ETH) emerged as the hardest-hit asset, with $448 million in liquidations, while Bitcoin (BTC) accounted for $278 million in losses Ethereum (ETH) Price News: Plunges 7% as Crypto Carnage^[1]. The liquidation cascade was concentrated on decentralized exchanges (DEXs), with Hyperliquid recording $281 million in forced closures, the highest among platforms $340M ETH Liquidation Spells Trouble for Hyperliquid, HYPE Token^[5].

The turmoil followed a sharp decline in ETH, which fell 7% to $4,069.27, breaching critical support levels and triggering $235 million in long-position liquidations. Bitcoin, meanwhile, retreated from a record high of $125,000 to $117,483.78, erasing nearly all of its October gains Ethereum (ETH) Price News: Plunges 7% as Crypto Carnage^[1]. The selloff accelerated after Trump's remarks, with combined crypto liquidations surging to $1.19 billion within 24 hours Crypto Liquidations Top $600M As BTC Retreats From ATH^[3]. This marked the highest single-day liquidation volume in history, surpassing previous records set during the 2022 market crash.

Technical indicators highlighted the severity of the downturn. ETH's price action showed a breakdown of multi-month support at $4,287, with volume spiking to 372,211 units-double the 24-hour average. The token's failed recovery attempts at $4,141 further signaled capitulation. For Bitcoin, the retreat from $125,000 aligned with the upper boundary of an ascending channel, testing short-term support at $120,500–$116,000 Ethereum Trade on Hyperliquid Stands Out as Largest Amid $1B …^[4]. Analysts noted that the liquidation event reflected extreme leverage across both major and high-beta tokens, with nearly 90% of liquidations being long positions $340M ETH Liquidation Spells Trouble for Hyperliquid, HYPE Token^[5].

The impact extended beyond spot markets. Derivatives exchanges reported a 4.92% rise in open interest to $187 billion, while combined spot and derivatives trading volumes hit $9.72 trillion in August, the highest monthly total of 2025 Ethereum (ETH) Price News: Plunges 7% as Crypto Carnage^[1]. Hyperliquid's role in the liquidation event underscored the growing influence of DEXs in derivatives trading, with the platform accounting for 28% of total liquidations. A single $29.1 million ETH long position on Hyperliquid became the largest individual liquidation, highlighting the platform's vulnerability to ultra-leveraged trades $340M ETH Liquidation Spells Trouble for Hyperliquid, HYPE Token^[5].

Market sentiment turned sharply bearish as the Nasdaq and S&P 500 fell 3% and 2.3%, respectively, mirroring crypto's decline. The liquidation event also triggered a $166 million outflow from Hyperliquid's assets under management (AUM), with the platform's native token, HYPE, dropping 9% to $12.54 . Despite the losses, Hyperliquid emphasized that the incident was not a hack but a result of a trader exploiting leverage mechanics. In response, the platform reduced maximum leverage for BTC and ETH to 40x and 25x, respectively, to mitigate future risks .

The liquidation surge underscored the fragility of leveraged positions during periods of volatility. CoinGlass data showed that 260,000 traders were affected, with over $900 million in liquidations across top assets. The largest single liquidation-a $15.49 million BTC-USDT trade on Hyperliquid-highlighted the concentration of risk in institutional and retail positions . Analysts noted that such events often act as contrarian indicators, with liquidation spikes preceding potential reversals. However, the current environment's stretched positioning across majors and altcoins suggested lingering downside risks $340M ETH Liquidation Spells Trouble for Hyperliquid, HYPE Token^[5].

The event also reignited debates about the role of leverage in crypto markets. While liquidation data is often cited as a tool for identifying reversal zones, the scale of October 10's wipeout raised concerns about systemic vulnerabilities. Funding rates on perpetual contracts normalized after spiking, but traders remained cautious as Bitcoin's dominance dipped to 53.4%, and altcoins like Solana and XRP fell 3–5% Ethereum Trade on Hyperliquid Stands Out as Largest Amid $1B …^[4]. Institutional accumulation of BTC and ETH continued despite the selloff, suggesting underlying demand for crypto as a strategic asset Ethereum Trade on Hyperliquid Stands Out as Largest Amid $1B …^[4].