🌪️ A historic night in the crypto markets
On the night of October 10-11, the cryptocurrency market experienced the largest liquidation in its history.
In the space of a few hours, more than 19 billion leveraged positions were wiped out, according to data aggregated by CoinGlass et CCN.
Bitcoin briefly fell below $110 000, while Ethereum broke the $3 000, causing widespread panic in the derivatives markets.
More'1,6 million traders were liquidated within 24 hours, a figure never seen since the inception of the modern crypto market.
📊 Comparison: the liquidation of October 10, 2025 compared to previous crashes
| Event | Date | Total amount liquidated | Bitcoin (approx. price) | Triggering context |
|---|---|---|---|---|
| Covid-19 crash | March 2020 | ≈ $1,4 billion | ~$3 | Global panic, traditional markets collapse, flight to cash |
| May 2021 crash | May 19, 2021 | ≈ 8,6 billion | ~$30 | China crackdown + energy FUD and Elon Musk |
| November 2022 Crash (FTX) | November 8–10, 2022 | ≈ 9,0 billion | ~$15 | FTX collapses, panic on centralized platforms |
| August 2023 crash | August 18, 2023 | ≈ 3,0 billion | ~$25 | Domino effect of delayed ETFs and low liquidity |
| Historic liquidation of October 2025 | October 10–11, 2025 | ≈ $19,0 billion 💥 | ~$110 | Sudden US Tax Hike on China + Excess Leverage |
🧠 What we observe:
- The shock of 2025 exceeds by more than double the previous record (FTX, $9 billion).
- The market is much bigger today, but the leverage remains the same.
- The reaction was almost instantaneous, proof of a market dominated by algorithms and automated trading.
🧩 How does a liquidation work?
To understand this phenomenon, we must return to the mechanics of leveraged trading.
When a trader opens a leveraged position (x5, x10, x20, etc.), he borrows funds from the platform to increase his exposure.
But if the market moves in the opposite direction, the platform automatically closes the position as soon as the safety margin is no longer sufficient.
This is called a forced liquidation.
When a large number of positions are liquidated at the same time, these automatic orders themselves become massive sales, accelerating the fall of the market.
It's the snowball effect: each liquidation triggers others.
⚡ A chain of cascading reactions
According to initial analyses, the purge was caused by a convergence of several factors :
- Excessive long positions accumulated over several weeks, particularly on Bitcoin and Ethereum.
- A tense macroeconomic context, with the surprise announcement of new US taxes on Chinese imports.
- A sudden drop in liquidity, typical of weekend markets, which amplifies price movements.
- The role of trading algorithms, which react instantly to variations, increasing volatility.
Within minutes, the market was trapped in a cycle of automatic liquidations, forcing platforms to execute billions of dollars of orders without human intervention.
🧮 Key figures
- Total liquidations: 19,04 billion
- Number of liquidated positions: more than 1,6 million
- Most important position: $203 million on the ETH/USDT pair (Hyperliquid)
- Most affected platforms: Binance, OKX, Bybit and Hyperliquid
- Majority of liquidations: on positions long (betting on the rise)
🏦 The role of exchange platforms
On centralized exchanges have risk management mechanisms, including insurance fund, intended to absorb extreme losses in the event of a massive liquidation.
But during events of this magnitude, these funds can be stretched.
Some platforms have also experienced technical slowdowns temporary, with volumes reaching record levels.
DEXs (decentralized exchanges) like dYdX or Hyperliquid have executed all the liquidations on-chain, in complete transparency, but without escaping volatility.
🧠 Lessons to be learned from this massive liquidation
This episode reminds us how much the leveraged trading remains risky, even on established assets like Bitcoin.
Some principles of caution are required:
- Never overuse the lever.
- Understanding the liquidation zones visible on analytics platforms.
- Avoid over-leveraged positions during periods of macroeconomic uncertainty.
- Keep the majority of your assets outside the exchanges when not actively trading.
🌅 A purge that cleans the market
However violent it may be, this record liquidation undoubtedly marks a natural rebalancing of the market.
The most speculative positions were cleared, bringing leverage levels back to healthier areas.
The spot market, however, remains strong: Bitcoin is still above $110,000, after a rapid technical rebound.
Conclusion
The night of October 10, 2025 will go down in crypto history as the night of largest lever position cleanup ever observed.
A stark but necessary reminder: volatility is an integral part of this ecosystem.
And behind every red strand lies a mathematical mechanism—that of a free market, without a safety net.
Recent events remind us of a simple truth: your crypto isn't really yours while it's sitting on an exchange.
👉 Discover our Complete guide to getting off platforms et protect your assets safely.
Because financial freedom starts with sovereignty.
