👀👀About Friday’s Crash
1. The Trigger:
• A speculative attack synchronized with a political announcement.
• An anonymous account opened massive short positions on Hyperliquid just minutes before Trump announced 100% tariffs on China.
• This caused an instant BTC drop (-11%) and a domino effect across the entire market.
2. The Magnitude:
• $19.2B in positions liquidated within minutes → an all-time record (neither FTX, LUNA, nor March 2020 reached that figure).
• Open Interest was cut in half, meaning system-wide leverage was violently purged.
3. Immediate Consequences:
• Loss of confidence in exchanges such as Hyperliquid (accused of questionable practices).
• Altcoins wiped out, especially those with low liquidity and weak collateral (e.g., Ethena, Atom).
• Stablecoins under pressure: USDe lost its peg, and USDT traded above $1 — a clear sign of panic and flight to safety.
4. Structural Consequences:
• Market makers are pulling out or reducing exposure, which means:
Less liquidity
Wider spreads
Higher future volatility
• Exchanges are triggering auto-deleverage mechanisms (forcing the closure of winning positions to prevent order book collapse).
5. Macro View:
• This was a “mini black swan” driven by politics (tariffs) + high leverage + algorithmic trading.
• It doesn’t mark the start of a bear market, but it shows what a real crisis could look like if a larger event occurs (e.g., a recession or regulatory crackdown).
6. Investor Implications:
• If you held spot positions without leverage, the damage is temporary.
• If you were leveraged or trading derivatives, liquidation risk was extreme.
• Expect high volatility, low liquidity, and fake rebounds in the coming days.
• Capital flows will return first to $BTC
and USDT — not to altcoins. 😬😬😬