12/10/2025
The crypto market just witnessed the largest liquidation event in history:
Over 1.6 million traders were wiped out in just 24 hours, with more than $19 billion in leveraged positions liquidated β 9 times the previous record.
Bitcoin dropped over $20,000 in a single day, erasing $380 billion in market cap β an unprecedented loss.
βΈ»
Main reasons:
1. Excessive leverage:
β’ $16.7B in long positions liquidated vs. only $2.5B in shorts β 6.7:1 ratio.
β’ Most major exchanges (except Bitfinex) saw over 90% of liquidations from long positions.
β’ Hyperliquid alone wiped out $10.3B in longs.
2. Sentiment reversal:
β’ After months of rally since April, the market became overheated (Greed Index > 60).
β’ When Trump announced a 100% tariff on Chinese goods, panic selling cascaded across the market.
3. Thin liquidity:
β’ The announcement came after U.S. stock markets closed on Friday, a period of low crypto liquidity.
β’ Massive sell orders triggered a domino effect, sending prices into a free fall.
βΈ»
π Result: $19 billion wiped out in a single day β the biggest crash in crypto history.