Crypto Market Faces Historic $19B Liquidation Event

A sudden announcement of 100% US tariffs on Chinese imports on October 10, 2025, triggered the largest liquidation event in crypto history, leading to $19 billion in leveraged position losses.

The incident demonstrates the cryptocurrency market’s vulnerability to geopolitical moves and prompted significant market volatility, impacting Bitcoin BTC +0.20% , Ethereum ETH -0.36% , and numerous altcoins with severe trader losses.

The cryptocurrency market experienced its largest liquidation event when the US announced 100% tariffs on Chinese imports. Over $19 billion in leveraged positions across Bitcoin, Ethereum, and altcoins were liquidated, impacting 1.6 million traders.

Leading exchanges, including Binance, Hyperliquid, and Bybit, were severely affected. Richard Teng, CEO of Binance, mentioned they are reviewing infrastructure failures during the event, highlighting trader inconvenience and delayed order execution.

The immediate effect led to significant disruptions in on-chain and exchange operations. Bitcoin fell from $122,000 to $105,000, while Ethereum dropped 12% to $3,436, causing substantial financial losses among traders.

These financial impacts were exacerbated by the absence of institutional bailouts. Altcoins like Solana and Toncoin saw drastic devaluations, sparking concerns about market volatility and crypto’s susceptibility to geopolitical factors.

In the aftermath, exchanges are under pressure to improve systems and prevent future infrastructural failures. The event underscored crypto’s vulnerability to geopolitical events, urging discussions on leveraging strategies and risk management.

The historic liquidation parallels previous events like the FTX collapse but highlights the need for improved market resilience. Experts caution over-reliance on leveraged positions and call for regulatory discussions to prevent similar occurrences.

Richard Teng, CEO, Binance, “We are reviewing infrastructure failures that caused delayed order execution and trader inconvenience during peak market stress.”