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Bitcoin's Dramatic Plunge: A Historic Liquidation Event

On October 10, Bitcoin experienced a significant drop, falling below $110,000 and triggering $19.31 billion in liquidations affecting over 1.6 million traders. This marked one of the largest single-day wipeouts in cryptocurrency history.

The week had started positively for Bitcoin, with two new highs set, but ended with a sharp decline. Bitstamp recorded its lowest point at $109,683, while Coingecko reported a drop to $105,896. Some sources indicated a brief dip to $101,516 before a quick recovery.

Word on the street is that big CEX’s auto liquidation of collateral tied to cross margined positions is why lots of alts got smoked on the move down.
said BitMEX founder Arthur Hayes, suggesting that a major centralized exchange's actions may have triggered the collapse in altcoins.

Long positions were hit hardest, accounting for $16.81 billion of the losses. Bitcoin and Ethereum led the way with $5.36 billion and $4.42 billion liquidated, respectively. Other notable liquidations included Solana ($2 billion), HYPE ($890 million), and XRP ($707.5 million).

The liquidation heatmap from Coinglass showed that Hyperliquid experienced the largest platform-specific liquidations at $10.3 billion, followed by Bybit ($4.65 billion), Binance ($2.4 billion), and OKX ($1.2 billion).

While some attributed the market turmoil to President Donald Trump’s tariff threats on China, the scale of the liquidations raised suspicions of market manipulation. Analysts on X suggested that large players may have orchestrated this event, which is being compared to previous significant market crashes like the COVID crash, the LUNA implosion, and the FTX collapse.