Historical cascading liquidation of cryptocurrencies worth $19 billion: the day the markets wobbled

On October 11, 2025, marked the largest single-day drop in the history of cryptocurrencies, with the liquidation of $19 billion in leveraged positions and over 1.6 million traders facing margin calls. In just one hour, $7.5 billion vanished, and the stablecoin $USDe briefly decoupled to $0.65 before recovering.

What was the catalyst? Trump's 100% tariffs on Chinese imports, which unleashed panic in global markets. Excessive leverage in derivatives accelerated the collapse, and only Hyperliquid reported losses of $1.23 billion to its traders. However, amid the chaos, a savvy trader made between $160 million and $200 million with short positions.

Key takeaways:

• Over-leveraged futures traders faced catastrophic losses

• The temporary instability of stablecoins opened rare arbitrage windows.

• Geopolitical shocks amplified the systemic volatility of cryptocurrencies

As markets stabilize, traders are urged to monitor critical support/resistance zones, limit leverage exposure, and track on-chain liquidation data for early signs of stress.

A historical reminder that in the world of cryptocurrencies, risk management is everything.

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