October 10th left behind one of the most violent corrections of the year in the crypto ecosystem. In just 24 hours, the market was hit by a wave of over $19 billion in liquidations, according to CoinGlass data.
According to the latest data from CoinGlass, only major exchanges reflected the magnitude of bearish pressure over the past 12 hours. Binance records total liquidation of $99.76 millionthe long position is 58.42 million and the short position is 41.34 million. This was followed by Bybit, with $50.3 million liquidated ($36.3 million long and $14 million short).
meanwhile, Hyperliquid reported a total of $38.6 million, while OKX reached $38.32 million.distributed among 21.97 million long payments and 16.36 million short payments. Gate.io closed the list with 35.2 million trades, of which 29.53 million were long and 5.66 million short.
Bitcoin fell below $110,000 and Ethereum fell more than 8% in a few hours. Reflecting the magnitude of the correction, the market lost more than $125 billion in total capital.
Liquidation occurs when an exchange automatically closes a leveraged position (whether long or short) because the price of an asset moves against the trader and the available margin is not enough to cover the loss. This mechanism is intended to prevent operators from being left with negative balances, but if this happens on a large scale, as in this case, the market decline can become even more severe.
The perfect storm: fear, influence, and trade wars
This collapse was a direct result of a series of macroeconomic and structural factors. US President Donald Trump’s announcement to impose 100% tariffs on Chinese goods has reignited the trade war between the two countries and triggered a massive sale of “risk assets.” Traditional markets retreated, and the effects were quickly felt in the crypto ecosystem.
The reaction was particularly strong in the futures market, where millions of traders held long positions. – Bet that the price will go up with a high level of leverage. As Bitcoin (BTC) and Ether (ETH) prices began to fall, platforms activated automatic liquidations to protect their risk margins, triggering a series of forced shutdowns that amplified the decline.
In total, More than 1.6 million traders were liquidated, most of whom held long positions.. According to CoinGlass, at some times the transaction volume exceeded $7 billion per hour.
(Tag translation) Binance
