The October 10 crypto liquidation was the largest forced-liquidation event in digital-asset history, triggering over $19 billion in liquidations and a $65 billion drop in open interest within minutes; internal pricing oracle failures and rapid liquidity withdrawal are cited as key triggers.
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Over $19 billion forcibly liquidated in minutes on October 10, 2025.
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Open interest fell roughly $65 billion as derivatives positions were unwound across exchanges.
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Liquidity on major exchange order books plummeted from ~$89M to ~$2M, spreads widened to 22%, and trading surged ~16x at the peak.
October 10 crypto liquidation: Read how the $19B forced liquidations and $65B open-interest drop unfolded, what caused it, and what investors should do next.
Published: October 11, 2025 · Updated: October 15, 2025 · Author: COINOTAG Editorial Team
What is the October 10 crypto liquidation?
The October 10 crypto liquidation refers to the largest-known forced-liquidation event in digital-asset trading, in which more than $19 billion of positions were liquidated in a matter of minutes, precipitating a roughly $65 billion decline in open interest across derivatives markets. The episode exposed acute fragilities in exchange pricing, liquidity provisioning, and risk controls.
How did oracle vulnerabilities and sudden liquidity withdrawal trigger the crash?
Investigations and market-data analysis point to a combination of factors that interacted to produce the crash. Exchanges using internal pricing mechanisms for certain pegged tokens—cited examples include USDE, bnSOL, and wBETH—reported rapid price dislocations. Rena Labs, an AI-driven market analysis firm, documented a collapse in available liquidity on major order books from an average of about $89 million to approximately $2 million in under 20 minutes, while bid-ask spreads widened to 22%.
Zero or limited external price feeds for those pegged assets, combined with Binance’s “Unified Accounts” valuations for internal tokens, increased susceptibility to forced liquidations when liquidity evaporated. On-chain and off-chain trade telemetry showed nearly 3,000 trades per minute — roughly 16x normal volume — dominated by sell orders and stop-loss cascades. Rena Labs observed pre-crisis anomalies hours earlier, including large-volume order volleys and suspicious spoofing-like patterns that signaled targeted pressure prior to the liquidity withdrawal.
Key data points: ~$19B liquidated, ~$65B open interest decline, USDE accounted for about $346M of liquidations, liquidity drop to ~$2M, spreads up to 22%, and ~3,000 trades/minute at peak.
Frequently Asked Questions
How many dollars were liquidated during the October 10 crypto crash and which tokens were hardest hit?
Market data shows over $19 billion in forced liquidations on October 10, 2025. Pegged tokens and exchange-native representations such as USDE, bnSOL and wBETH were among the most affected, with USDE liquidations estimated at about $346 million. The event led to a $65 billion contraction in total open interest.
Why did crypto markets crash on October 10?
The crash followed rapid liquidity withdrawal, unusual order book patterns, and apparent price-feed weaknesses for certain pegged assets. When liquidity evaporated, stop-losses and margin calls cascaded, forcing mass liquidations. Simply put: shallow markets plus leveraged positions created a feedback loop that amplified price moves.
Key Takeaways
- Historic scale: October 10 saw the largest forced-liquidation event in crypto, with >$19B liquidated and ~ $65B in open interest wiped out.
- Structural vulnerabilities: Reliance on internal pricing for pegged tokens and rapid liquidity withdrawal exposed weaknesses in exchange risk models and oracle design.
- Actionable insight: Traders and institutions should reassess counterparty exposure, margin practices, and reliance on single-source pricing; exchanges must prioritize resilient oracle architectures and pre-emptive liquidity safeguards.
Conclusion
The October 10 crypto liquidation highlighted systemic risks in modern digital-asset markets: concentrated liquidity, leveraged positions, and internal pricing mechanics can combine to create market-wide dislocations. Authorities and market participants — including exchanges, market makers, and DeFi platforms — should strengthen oracle resilience, improve liquidity planning, and enhance anomaly detection to reduce tail-risk events. For investors, the episode underscores the need for rigorous risk management and diversified exposure. COINOTAG will continue tracking official updates from exchanges and industry analytics providers such as Rena Labs and publishing verified findings as investigations progress.
Disclaimer: This article does not constitute investment advice. Every trading decision involves risk; readers should conduct their own research before engaging with crypto markets.
Crypto Investing Risk Warning
Crypto assets are highly volatile. Your capital is at risk. Don’t invest unless you’re prepared to lose all the money you invest.
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