Bitcoin News Today: Trader Grabs $17M as $113M Vanishes in Crypto Chaos

Massive Crypto Futures Liquidation: $113 Million Wiped Out in a Single Hour

Global cryptocurrency markets experienced one of the most剧烈的 liquidation events in history on October 10, 2025, as $113 million in leveraged positions were forcibly closed within an hour, according to CoinGlass data. The collapse followed a cascade of geopolitical and regulatory shocks, including President Donald Trump's announcement of a 100% tariff on Chinese imports, which triggered a 14% drop in crypto's total market cap to $3.79 trillion. The liquidation surge, exceeding $19 billion in total, surpassed previous records and highlighted the systemic risks of leveraged trading in crypto derivatives.

The crisis unfolded against a backdrop of fragile market sentiment. Just days earlier, U.S.-China trade negotiations in Malaysia had sparked a brief rebound, with Bitcoin surging to $113,700 and the total market cap rising to $3.88 trillion, according to BeInCrypto. The deal, which averted immediate tariff escalations, initially eased fears of a trade war but failed to stabilize the volatile derivatives market, as reported by TheStreet. Perpetual futures platforms, which account for nearly 70% of Bitcoin trading volume, became focal points of the collapse as automated liquidations accelerated price declines.

Leverage, a double-edged sword in crypto trading, played a central role. Platforms like Hyperliquid and Bybit offer up to 100x leverage, enabling retail traders to amplify gains—or losses—exponentially. When Bitcoin fell below $105,000 during the crisis, margin calls triggered a self-reinforcing cycle of selling. "Leverage turns a risky asset into an existential threat for overexposed traders," said Anton Palovaara, founder of Leverage.Trading, in a Leverage.Trading report that analyzed 106,302 retail trade setups during the turmoil. U.S. traders, in particular, exhibited heightened caution, conducting 40% more margin-call calculations than their global counterparts as losses mounted.

Amid the chaos, one trader defied the odds. Known as "0xc2a," the individual pocketed $17 million by strategically accumulating long positions in Bitcoin and Ethereum before the rebound, according to Yahoo Finance. Holding $165.5 million in BTC and $131.3 million in ETH, 0xc2a's success underscored the potential for disciplined, high-conviction strategies in turbulent markets. Blockchain analytics firm Lookonchain noted that the trader rebalanced positions in real time, aligning with shifting sentiment and avoiding liquidation traps.

Regulatory developments further complicated the landscape. France's controversial proposal to adopt Bitcoin as a strategic reserve asset and ban the digital euro added to market uncertainty. Meanwhile, Norway's 30% surge in crypto tax reporting—reflecting $4 billion in declared digital assets—highlighted growing institutional acceptance. These moves contrasted with the European Central Bank's cautious stance on euro-backed stablecoins, which remain dwarfed by U.S. dollar-dominated counterparts like Tether and USDC.

The liquidation event has reignited debates about leverage risks and market resilience. "This wasn't just a flash crash—it was a stress test for the entire ecosystem," said a CoinDesk analyst. While Bitcoin's long-term trajectory remains intact (up 60% year-to-date), the incident exposed vulnerabilities in derivatives infrastructure and retail trading behavior. For now, investors are advised to treat crypto as a high-risk, high-volatility asset—and to tread carefully with leverage.