A combination of factors met at a perfect storm on Friday, which motivates the cryptocurrency industry Biggest event in extermination in history and short shipping of bitcoin (Btc) below $ 110,000.
The $ 19 billion in liquids does not mean that investors have lost the sum of money, but instead of leveraged positions are forced to be closed.
Unrealized loss can be better followed by falling into the market capitalization, showing a $ 450-billion wipeout. From Friday to Sunday, the total capitalization of the cryptocurrency market fell from $ 4.24 trillion to $ 3.79 trillion. At the time of writing, the market was revealed above $ 4 trillion.
Pundits still come together how a mix of macro shocks, exchanging incorrectly raising and overleveraged positions that convert to the largest -day -to -day destruction of the industry. Here’s what we know right now.
The tariff shock ripples by the global and crypto markets
On Friday, United States President Donald Trump rise The ongoing trade war that defines most of his term, threatens a 100% tariff on Chinese imports since November 1, “or earlier, depending on any further actions or changes China has taken.”
In Crypto, some analysts believe that the decline of the market that day was triggered by a price that is a certain price of oracle malfunction rather than the threat of Trump’s tariff. However, a comparison with traditional financial indexes show that the seller-off is not confined to crypto.
The NASDAQ-100, which tracks 100 leading non-financial companies, leads the denial of US major indexes with 3.49% of Friday’s bell closure. The S&P 500 fell 2.71%, while Dow Jones’s average industrial, consisting of 30 blue chip companies, lost 1.9%.
Bitcoin exceeds it all on the downside, slipping 3.93% in regular trading hours and continues to bleed after the US markets close.
Binance’s Oracle glitch is blamed on crypto meltdown
Although Trump’s tariff announcement triggers the broader market sale and the fall of the Bitcoin weekend, industry-specific factors have strengthened the damage once traditional markets are closed.
One of the major flashpoints is the USDE, Ethena’s synthetic dollar, which keeps it Peg in greenback by a delta-neutral approach In the Perpetual Futures Market. On Friday, the USDE appeared to lose its consistency, which fell to $ 0.65, but it was mainly visible in Binance. Throughout the other exchanges, the USDE exchanged the kind of gentle volatility typical of the tokens with dollars during turbulent market conditions.
According to a Assessment Through the X user YQ, the crash was sparked by a USDE sell-off exposed flaws in the unified margin oracle of the binn. The system has priced collateral assets such as USDE, WBeth and BNSOL using its own Binance order books, which clearly marked them in real time. It spans a chain of fluids that drain the liquidity in coherent areas. Other platforms that refer to Binance prices followed the suit, even though USDE and related property usually trade elsewhere. YQ described the incident as a failure in Oracle, not a conventional market crash.
In a separate review, Haseeb Qureshi, manages the partner in the Crypto Investment Fund Dragonfly, Says That USDE did not really remove, noticing that its deepest liquidity was sitting on the curve, where prices deviates less than 0.3%. In Binance, API failures and the absence of a direct mint-and-redem channel with Ethena prevent market makers from peg restoration.
Well as well to lying out the binance for the latest crypto crashing
Delphi Digital Analyst Trevor King Says That Binance made an error on the first principle by appreciating wrapped properties such as WBeth, BNSOL and USDE based on its own place prices than their underlying redemption values, causing collateral to appear weaker than this and motivate mass prevention.
Related: The ‘UPTOBER’ MARKS 21 Crypto ETF FILINGS as BITCOIN CLIMBS
Like Binance’s Oracle has become a “record price” of de Facto throughout the trading ecosystem, false feeds spread to other exchanges and decentralized exchanges (DEX). However, the analyst said he was still careful about pointing the root cause of Binance, as the timing of the initial cascade should be more attention.
It is also part of Binance’s defense. The exchange Says In a statement that “core futures and spot matching engines and API trading remained operational” during the event and claimed that volatility was “mainly driven by general market conditions.”
However, the exchange admitted that not all modules conducted as they should have:
At the same time, the analysis confirmed that following 2025-10-10 21:18 (UTC), some platform modules have experienced technical glitches, and some properties have de-pegging issues due to sharp market fluctuations. “
Binance also announced that $ 283 million was distributed in two batches to pay for affected clients. Binance’s token, BNB (Bnb), climb a new all-time high on Monday.
Binance updated margin price feeds for WBeth and BNSOL on Saturday, transferring their values from Binance’s own prices to the official staking conversion ratios. The change was originally scheduled for Tuesday, October 14th, but was implemented earlier following the Market turmoil.
Hyperliquid defends its role in $ 19-billion crypto extermination
Hyperliquid is the rising Star of Crypto and the leading Dex for eternal volume, according to Defillama, a data provider who recently collapsed Aster data about integrity concerns. Aster, a Hyperliquid rival, is supported by Binance’s investment arm, Yzi Labs.
Related: Aster Delisting exposes the growing crisis to Defi’s integrity
Hyperliquid is also listed as the leading place where most of the exterminations occurred during the $ 19-billion cascade, prompting Kris Marszalek, CEO of Crypto.com, who called for an investigation of leading derivatives platforms.
Hyperliquid founder Jeff Yan defended His exchange by saying that it operates as designed, maintaining 100% uptime and zero bad debt throughout the chaos.
He explained that fluids were not caused by a system failure but in excessive action during a rapid market collapse that saw many altcoins falling more than 50% in minutes. The process of extinguishing hyperliquid is the first attempt to close the undercollateralized position by its order book, then rely on hyperliquid liquid provider vaults as the backstop liquidator. If both failed, the exchange encourages auto-deleveraging, a mechanism that closes profitable positions on the winning side to maintain solvency.
Yan also pushed against critics, accusing rivals to replace the rugged blame.
“Solvency and Uptime are the two most important ownership of a financial system,” he said, calling on attempts to “gaslight users” about the performance of hyperliquid non -ethical hyperts. She is different Hyperliquid’s Onchain transparency with opaque extermination skills of centralized exchanges, focusing that the episode showed the stability of the margin system rather than a flaw.
The short stakes of the hyperliquid whale before the crypto crash disaster
More than 250 Dompets have lost its millionaire status in Hyperliquid since the fall of Friday, according to Hyperacker. There have been many wallets since called “Hyperliquid Whales,” but one in particular has drawn a fresh investigation for unusual timing and extraordinary income.
A whale trader at Derivatives Dex gets attention after opening a short position only minutes before Trump’s tariff announcement On Friday, they earned $ 192 million in income.
On Sunday, the same purse opened another massive stakes: a $ 163-million short against Bitcoin using 10x leverage, showing nearly $ 3.5 million income. The position is liquid if bitcoin rises to $ 125,500.
The timing of these trading has led many to the crypto community to label the businessman of a “whale insider,” with some thought that their positions may have contributed to the $ 19-billion cascade destination over the weekend.
Magazine: Delayed
