According to widespread reports from on-chain analysts and crypto news outlets, a brand-new wallet on the decentralized exchange Hyperliquid opened a massive leveraged short position on Bitcoin approximately 30 minutes before President Trump's October 10, 2025, announcement of 100% tariffs on Chinese goods and tech imports.
The trader closed the position shortly after the ensuing flash crash (which saw BTC drop ~17% from $122,000 to $101,000), netting an estimated $88 million in profit from the BTC short alone—part of a broader $190–200 million haul that included Ethereum positions.
The wallet was created earlier that day (or the day prior, per some accounts), fueling speculation of insider trading tied to advance knowledge of the tariff tweet.
This event went viral on X, with crypto analyst Vivek Sen's post garnering over 68,000 likes and sparking debates about market manipulation.
On-chain data from trackers like Lookonchain and @mlmabc corroborated the trades, showing the whale scaling into ~$1.1 billion in notional shorts (including 6,189 BTC at 10x leverage) just before the dump.
No official investigation has been announced as of October 12, but the timing has drawn comparisons to past high-profile insider cases in traditional finance.
The trader closed the position shortly after the ensuing flash crash (which saw BTC drop ~17% from $122,000 to $101,000), netting an estimated $88 million in profit from the BTC short alone—part of a broader $190–200 million haul that included Ethereum positions.
The wallet was created earlier that day (or the day prior, per some accounts), fueling speculation of insider trading tied to advance knowledge of the tariff tweet.
This event went viral on X, with crypto analyst Vivek Sen's post garnering over 68,000 likes and sparking debates about market manipulation.
On-chain data from trackers like Lookonchain and @mlmabc corroborated the trades, showing the whale scaling into ~$1.1 billion in notional shorts (including 6,189 BTC at 10x leverage) just before the dump.
No official investigation has been announced as of October 12, but the timing has drawn comparisons to past high-profile insider cases in traditional finance.
Overview of Recent Cryptocurrency Events (October 9–12, 2025)
The cryptocurrency market experienced one of its most severe downturns in recent history over the past few days, primarily triggered by U.S. President Donald Trump's announcement on October 10 of plans to impose 100% tariffs on Chinese goods and tech imports.
This escalated U.S.-China trade tensions, sparking a global risk-off sentiment that rippled through financial markets, including stocks, bonds, and commodities.
The crypto sector, already riding high on post-election optimism earlier in the week, flipped rapidly from "greed" to "fear" as measured by the Crypto Fear & Greed Index, which plunged from 64 (Greed) on October 9 to 27 (Fear) by October 11.
Key Timeline of Events
- October 9: Markets were buoyant, with Bitcoin (BTC) trading above $122,000 and total crypto market capitalization hovering near $4 trillion. Altcoins like Ethereum (ETH), Solana (SOL), and XRP saw gains of 5–10% amid broader risk-on sentiment.
- October 10 (Flash Crash): Trump's tariff tweet hit at around 2 PM UTC, igniting panic. BTC plummeted $12,000 in minutes—from $122,000 to $101,000—a 17% drop. ETH fell 20% to $3,574, while altcoins cratered 50–80% in some cases, with several meme coins and low-liquidity tokens briefly trading near zero on futures exchanges. Thin weekend liquidity amplified the sell-off, as high-leverage long positions (built up during the prior rally) triggered cascading liquidations.
- October 11: The bleed continued, with BTC dipping below $100,000 briefly before stabilizing around $102,000–$105,000. Global exchanges and DEXs reported API outages and routing failures, exacerbating the chaos—market makers pulled liquidity, creating a "vacuum" that wiped out even modest-leverage traders. Rumors swirled of major desks like Wintermute facing stress, and a whale reportedly netted $200 million by shorting $1.1 billion in positions just before the drop.
- October 12 (Ongoing Recovery Attempts): Markets showed early signs of stabilization, with BTC rebounding slightly to $108,000 and total volume spiking to $250 billion as bargain hunters entered. However, the downturn persisted into the morning, with broader indices like the Nasdaq down 2–3% in sympathy.
This event marks the largest single-day liquidation cascade since the 2022 FTX collapse, surpassing even the COVID-era crash in intensity for leveraged positions. Contributing factors included:
- Excessive Leverage: Traders had piled into 10–50x longs, with funding rates at multi-month highs.
- Infrastructure Issues: Simultaneous exchange outages led to over-executed orders and delayed fills.
- Macro Pressures: Rising U.S. bond yields, ETF outflows, and a strengthening dollar added fuel.
- Token Unlocks: Scheduled releases for several altcoins flooded supply during the dip.
Social media on X buzzed with retail panic, memes about "nuked" portfolios, and calls to "DCA" (dollar-cost average) through the volatility. Analysts noted it as a "healthy shakeout" removing weak hands, with potential for a rebound if trade talks de-escalate.
How Much Was Lost?
The "losses" can be measured in two main ways: total market capitalization erosion (paper losses across all holdings) and realized liquidations (forced sales of leveraged positions). Based on aggregated data, see image below.
These figures are estimates from on-chain data aggregators like Coinglass and exchange reports; actual investor losses could be higher if including unrealized spot holdings. While devastating short-term, historical patterns suggest such crashes often precede 20–50% recoveries within weeks, especially if tariffs are negotiated down.
For real-time updates, monitor sites like CoinMarketCap or TradingView's TOTAL index. If you're holding, experts advise against revenge trading—focus on fundamentals amid the noise.
The cryptocurrency market experienced one of its most severe downturns in recent history over the past few days, primarily triggered by U.S. President Donald Trump's announcement on October 10 of plans to impose 100% tariffs on Chinese goods and tech imports.
This escalated U.S.-China trade tensions, sparking a global risk-off sentiment that rippled through financial markets, including stocks, bonds, and commodities.
The crypto sector, already riding high on post-election optimism earlier in the week, flipped rapidly from "greed" to "fear" as measured by the Crypto Fear & Greed Index, which plunged from 64 (Greed) on October 9 to 27 (Fear) by October 11.
Key Timeline of Events
- October 9: Markets were buoyant, with Bitcoin (BTC) trading above $122,000 and total crypto market capitalization hovering near $4 trillion. Altcoins like Ethereum (ETH), Solana (SOL), and XRP saw gains of 5–10% amid broader risk-on sentiment.
- October 10 (Flash Crash): Trump's tariff tweet hit at around 2 PM UTC, igniting panic. BTC plummeted $12,000 in minutes—from $122,000 to $101,000—a 17% drop. ETH fell 20% to $3,574, while altcoins cratered 50–80% in some cases, with several meme coins and low-liquidity tokens briefly trading near zero on futures exchanges. Thin weekend liquidity amplified the sell-off, as high-leverage long positions (built up during the prior rally) triggered cascading liquidations.
- October 11: The bleed continued, with BTC dipping below $100,000 briefly before stabilizing around $102,000–$105,000. Global exchanges and DEXs reported API outages and routing failures, exacerbating the chaos—market makers pulled liquidity, creating a "vacuum" that wiped out even modest-leverage traders. Rumors swirled of major desks like Wintermute facing stress, and a whale reportedly netted $200 million by shorting $1.1 billion in positions just before the drop.
- October 12 (Ongoing Recovery Attempts): Markets showed early signs of stabilization, with BTC rebounding slightly to $108,000 and total volume spiking to $250 billion as bargain hunters entered. However, the downturn persisted into the morning, with broader indices like the Nasdaq down 2–3% in sympathy.
This event marks the largest single-day liquidation cascade since the 2022 FTX collapse, surpassing even the COVID-era crash in intensity for leveraged positions. Contributing factors included:
- Excessive Leverage: Traders had piled into 10–50x longs, with funding rates at multi-month highs.
- Infrastructure Issues: Simultaneous exchange outages led to over-executed orders and delayed fills.
- Macro Pressures: Rising U.S. bond yields, ETF outflows, and a strengthening dollar added fuel.
- Token Unlocks: Scheduled releases for several altcoins flooded supply during the dip.
Social media on X buzzed with retail panic, memes about "nuked" portfolios, and calls to "DCA" (dollar-cost average) through the volatility. Analysts noted it as a "healthy shakeout" removing weak hands, with potential for a rebound if trade talks de-escalate.
How Much Was Lost?
The "losses" can be measured in two main ways: total market capitalization erosion (paper losses across all holdings) and realized liquidations (forced sales of leveraged positions). Based on aggregated data, see image below.
These figures are estimates from on-chain data aggregators like Coinglass and exchange reports; actual investor losses could be higher if including unrealized spot holdings. While devastating short-term, historical patterns suggest such crashes often precede 20–50% recoveries within weeks, especially if tariffs are negotiated down.
For real-time updates, monitor sites like CoinMarketCap or TradingView's TOTAL index. If you're holding, experts advise against revenge trading—focus on fundamentals amid the noise.
Impact on Specific Altcoins from the October 10–12, 2025 Crash
While Bitcoin's 17% plunge was brutal, altcoins bore the brunt of the sell-off, with many experiencing 30–80% drops due to thinner liquidity, high leverage, and cascading liquidations.
Meme coins and low-cap tokens were decimated, often flashing to near-zero on exchanges before partial recoveries. Established layer-1s like Ethereum and Solana fared better but still saw significant erosion, with total altcoin market cap (excluding BTC) shedding ~$300–400 billion.
Social sentiment on X highlighted retail outrage over "manipulated" dumps, with calls to boycott exchanges like Binance for alleged latency issues that amplified losses.
Key Metrics for Top Altcoins
The table below summarizes performance for select top altcoins, based on peak-to-trough changes from October 9 highs to October 12 lows. Losses are estimated from pre-crash market caps.
Deeper Insights
- Meme Coins and Low-Caps: Tokens like PEPE and SHIB cratered 70–90%, with some unlisted alts (e.g., ALF) avoiding the worst due to no exchange exposure. X users reported "zero-sum" dynamics where BTC holders dumped alts for safety. Total altcoin liquidations hit $10–12B of the $19B overall, mostly longs on perpetuals.
- Resilient Outliers: Privacy coins like Zcash (ZEC) dropped "only" 45% but rebounded to $290, outperforming amid chaos—proof that utility can shine in crashes.
- Broader Trends: Altcoin charts now echo the 2020 COVID dump (violent shakeout to range lows), but late-cycle positioning suggests a 20–50% rebound if tariffs ease. Analysts view this as a "healthy shakeout," with December 2020-like entry points for patient buyers. Avoid leverage; focus on supports like ETH's 200 EMA.
For live charts, check CoinGecko or TradingView. This volatility underscores crypto's macro ties—stay diversified.
While Bitcoin's 17% plunge was brutal, altcoins bore the brunt of the sell-off, with many experiencing 30–80% drops due to thinner liquidity, high leverage, and cascading liquidations.
Meme coins and low-cap tokens were decimated, often flashing to near-zero on exchanges before partial recoveries. Established layer-1s like Ethereum and Solana fared better but still saw significant erosion, with total altcoin market cap (excluding BTC) shedding ~$300–400 billion.
Social sentiment on X highlighted retail outrage over "manipulated" dumps, with calls to boycott exchanges like Binance for alleged latency issues that amplified losses.
Key Metrics for Top Altcoins
The table below summarizes performance for select top altcoins, based on peak-to-trough changes from October 9 highs to October 12 lows. Losses are estimated from pre-crash market caps.
Deeper Insights
- Meme Coins and Low-Caps: Tokens like PEPE and SHIB cratered 70–90%, with some unlisted alts (e.g., ALF) avoiding the worst due to no exchange exposure. X users reported "zero-sum" dynamics where BTC holders dumped alts for safety. Total altcoin liquidations hit $10–12B of the $19B overall, mostly longs on perpetuals.
- Resilient Outliers: Privacy coins like Zcash (ZEC) dropped "only" 45% but rebounded to $290, outperforming amid chaos—proof that utility can shine in crashes.
- Broader Trends: Altcoin charts now echo the 2020 COVID dump (violent shakeout to range lows), but late-cycle positioning suggests a 20–50% rebound if tariffs ease. Analysts view this as a "healthy shakeout," with December 2020-like entry points for patient buyers. Avoid leverage; focus on supports like ETH's 200 EMA.
For live charts, check CoinGecko or TradingView. This volatility underscores crypto's macro ties—stay diversified.
• • •
Missing some Tweet in this thread? You can try to
force a refresh
