How US$19 billion vanished in the October 2025 crypto crash.

Crypto crash: Inside the US$19 billion meltdown, Hyperliquid’s woes, and the human toll

The cryptocurrency market has always been volatile, but the recent collapse on October 10, 2025, was a watershed moment. Billions of dollars in value were wiped out in seconds, traders across exchanges were liquidated, and the ripple effects extended into real lives in tragic ways.

To understand this event, known now simply as the “crypto crash”, we must examine how the markets moved, what caused the destruction, who benefited, and how one trading platform, Hyperliquid, became a focal point in the chaos.

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The spark: Trump’s 100% tariff announcement

The immediate trigger of the crash was political. At 4.50 p.m. Eastern on Friday, October 10, President Donald Trump posted on Truth Social that the United States would impose a 100% tariff on Chinese imports beginning November 1, 2025, alongside new export controls on critical software.

Timing was crucial. The stock market was closed for the weekend, but cryptocurrency trades 24 hours a day, 7 days a week. Within seconds of the post, Bitcoin plunged over US$10,000 in value, triggering a cascade of liquidations across leveraged positions. Major altcoins fell even harder, with some losing up to 70% of their value.

What unfolded was a textbook flash crash. Automated algorithms began forced selling, which amplified the panic. In total, US$19 billion in positions were liquidated across exchanges, according to early estimates. This was one of the largest single-day wipeouts in crypto history.

Hyperliquid and the collapse of confidence

Among the most affected platforms was Hyperliquid, a rapidly growing decentralised exchange known for offering high leverage to retail traders. Users on Hyperliquid were hit with near-instant liquidations, and reports suggest many accounts were zeroed out in seconds.

While Binance and Coinbase experienced temporary service outages, Hyperliquid continued processing trades. This meant that while some retail users were locked out elsewhere, traders on Hyperliquid faced full exposure to the crash without the buffer of halted systems. The result was catastrophic losses concentrated on a single platform.

Whales, large holders with millions in capital appeared to profit massively. Blockchain analysts noted that a handful of newly created accounts had opened tens of millions in short positions mere minutes before Trump’s post. One such account, funded with US$80 million just a day prior, walked away with nearly US$100 million in profit. The precision of these trades has raised allegations of insider knowledge tied directly to Trump’s announcement.

The human cost: From traders to tragedy

The financial losses were staggering, but the human toll was far worse. Thousands of traders saw their life savings evaporate in moments. In the most high-profile case, Ukrainian investor Konstantin Galich was found dead in his Lamborghini shortly after the crash, in what authorities suspect was suicide. Reports suggest he lost tens of millions of dollars, capital that was not fully his own, leaving him trapped under impossible debt.

While his story gained international headlines, he was not alone. Unverified reports circulating in crypto forums and social media claim that over 2,000 suicides worldwide may be linked to the crash. Although these numbers remain speculative, the pattern is clear: when billions vanish, the pressure on heavily leveraged retail traders, many of whom gamble with borrowed funds, leads to devastating real-life consequences.

Financial stress is a well-documented driver of mental health crises. The rapid destruction of wealth in a highly speculative environment, combined with the global accessibility of crypto trading, means the impacts are widespread and immediate.

The mechanics of the US$19 billion wipeout

The destruction stemmed from a market environment that was massively overleveraged. Leverage allows traders to borrow funds to multiply their positions, but in volatile markets it can lead to instant liquidation when prices move sharply.

On October 10, that’s exactly what happened.

Bitcoin dropped over US$10,000 in seconds, triggering automatic liquidations.
Ethereum and other major tokens followed, some losing more than half their value.
On-chain data shows US$19 billion liquidated across exchanges, with the majority coming from highly leveraged futures positions.

This event was compounded by exchange outages. Binance and Coinbase reported technical failures, preventing some users from adjusting positions. Ironically, this meant those who could not log in were partially shielded from liquidation, while platforms like Hyperliquid that stayed online wiped users instantly.

Who benefited from the crash?

For every loser in the crypto crash, there were winners. The beneficiaries were a small group of traders who managed to open precise short positions minutes before Trump’s post. Blockchain data suggests they collectively earned hundreds of millions of dollars, capitalising on information unavailable to the broader public.

This has fuelled accusations of insider trading. The trades were too perfectly timed to be coincidence, raising suspicions that certain parties had advance knowledge of Trump’s tariff announcement.

Beyond individual traders, market makers and exchanges also benefited. Exchanges profit from trading fees regardless of market direction. When billions are liquidated, exchanges often earn record revenues, even as retail users are ruined.

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The historical context: Whales and power in crypto

Crypto markets have always been vulnerable to manipulation by whales. Large players use their capital to move markets, force liquidations, and scoop up discounted assets. The October crash was simply the most glaring example, exposing how tightly intertwined politics, insider activity, and financial markets have become.

The parallels to earlier financial bubbles are striking. The tulip mania of the 1600s, the dot-com crash, and the 2008 housing crisis all saw insiders escape with profits while the masses bore the brunt of losses. What makes crypto unique is the speed of collapse and the global accessibility of participation. Anyone with a smartphone can enter the casino, and when the house wins, the fallout is universal.

Aftermath and rebound

In the days following the crash, Bitcoin and other cryptocurrencies staged a partial rebound, as bargain hunters entered the market. But confidence has been shaken. The narrative of crypto as a decentralised, fairer financial system has once again been undermined by evidence of insider rigging and political manipulation.

Some analysts predict that the crash may accelerate regulatory scrutiny. Calls are growing for investigations into whether traders had foreknowledge of Trump’s post. However, history suggests accountability in such cases is rare.

The lessons of the crypto crash

The October 2025 crash demonstrates that the crypto market remains a high-risk environment dominated by insiders. Retail traders using leverage are especially vulnerable, and the consequences extend beyond money into the realm of mental health and personal tragedy.

It also underscores the interconnectedness of politics and markets. A single social media post by a president was enough to erase nearly US$20 billion in wealth and destabilise millions of households worldwide.

For platforms like Hyperliquid, the fallout may prove existential. For traders, the lesson is stark: in a market where whales move billions with precision, the average participant is swimming with sharks.

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