According to @business, Bitcoin’s slight rebound after Friday’s crypto crash has not eased an approximately 20 billion dollar leveraged-bet purge that crippled parts of the crypto market, indicating conditions remain fragile and impaired in segments of trading infrastructure and positioning, source: @business. According to @business, the ongoing deleveraging pressure despite BTC’s bounce signals that leveraged positions and related market activity remain under stress, source: @business. According to @business, traders should maintain conservative leverage and tight risk controls until the purge abates and market functioning improves as characterized by the source, source: @business.

According to @lookonchain, as the market rebounds, a Bitcoin OG who shorted BTC and ETH before the crash and realized over $160M in profits has added to his BTC short; Source: Lookonchain on X, Oct 12, 2025. According to @lookonchain, the current BTC short stands at 1,423 BTC with an indicated value of about $161M; Source: Lookonchain on X, Oct 12, 2025.

According to @CryptoMichNL, in an Oct 12, 2025 X post, the latest altcoin selloff is a liquidation-driven crunch rather than a fundamentals-based decline (source: @CryptoMichNL). According to @CryptoMichNL, this panic-led flush creates large buy-the-dip opportunities as forced selling exhausts (source: @CryptoMichNL). According to @CryptoMichNL, the next likely move is to take out short-side liquidity, implying risk of a short squeeze and swift upside wicks that could trap late shorts (source: @CryptoMichNL).

According to @milesdeutscher, the prior day’s crypto sell-off was a textbook case of market manipulation executed during an illiquid Friday evening after the US session, with Europe and Asia largely inactive and elevated open interest on altcoins setting up cascading moves, source: @milesdeutscher on X. According to @milesdeutscher, a Trump tariff headline provided the timing catalyst while thin depth and positioning amplified price impact, source: @milesdeutscher on X. According to @milesdeutscher, potential attack vectors included targeted oracle disruptions, API hacks, or exchange engine breakdowns, source: @milesdeutscher on X. According to @milesdeutscher, traders should be alert to post-session and weekend liquidity gaps and closely monitor altcoin OI and infrastructure reliability as key risk factors, source: @milesdeutscher on X.

According to @KobeissiLetter, amid a broader crypto crash yesterday, XRP’s market cap fell from $161 billion at 4:50 PM ET to $80 billion by 5:20 PM ET, a 50% decline in 30 minutes. According to @KobeissiLetter, the move was described as an unprecedented liquidation event. According to @KobeissiLetter, no cause was provided and the source asked what happened to XRP, indicating that a confirmed driver was not specified.

According to Lookonchain, more than 1,000 wallets on Hyperliquid were completely wiped out during the latest market crash, with over 6,300 wallets showing combined losses exceeding $1.23B, source: Lookonchain on X; Hyperliquid leaderboard app.hyperliquid.xyz/leaderboard. Lookonchain reports that 205 wallets lost over $1M and more than 1,070 wallets lost over $100K, based on Hyperliquid’s public leaderboard, source: Lookonchain on X; Hyperliquid leaderboard app.hyperliquid.xyz/leaderboard. The loss distribution indicates a heavy tail of large account drawdowns on a major perpetuals DEX, a key datapoint for risk assessment during high-volatility moves, source: Lookonchain on X; Hyperliquid leaderboard app.hyperliquid.xyz/leaderboard.

According to @ag_dwf, the latest crypto market crash was not driven by fundamentals like the FTX collapse but by a tariff announcement that triggered leveraged liquidations, draining market liquidity (source: @ag_dwf on X, Oct 11, 2025). He adds that Bitcoin (BTC) and fundamentally strong projects could recover soon as liquidity returns, highlighting a liquidity-driven, not solvency-driven, drawdown (source: @ag_dwf on X, Oct 11, 2025).

According to @AltcoinGordon, the crypto market just experienced one of the worst crashes and the biggest liquidation event in its history, and he is bullish immediately following this deleveraging; source: @AltcoinGordon on X, Oct 11, 2025. He positions this as a post-liquidation bullish setup, contrasting with traders who turned bullish only after the wipeout; source: @AltcoinGordon on X, Oct 11, 2025.

According to @milesdeutscher, the selloff was a perfect-storm liquidation cascade driven by hidden leverage as traders rotated from spot to leverage over the prior month to chase perpetual DEX airdrops, elevating systemic risk despite muted altcoin euphoria, source: @milesdeutscher. According to @milesdeutscher, funding risk was obscured by hedged positions while altcoins were already bearish versus BTC and equities, creating a fragile setup, source: @milesdeutscher. According to @milesdeutscher, an underpriced tariff headline hit while equities were overbought and triggered a rapid open interest unwind across perps, source: @milesdeutscher. According to @milesdeutscher, mismatched underlying liquidity relative to market cap in many altcoins amplified slippage and forced deleveraging, accelerating liquidations, source: @milesdeutscher. According to @milesdeutscher, traders should avoid using leverage as a substitute for spot, reassess liquidity assumptions since market cap does not equal tradable depth, and prioritize survival over chasing returns, source: @milesdeutscher. According to @milesdeutscher, practical tactics include placing low stink bids on spot, closely tracking open interest and funding dynamics that can be masked by hedges, and recognizing that price levels do not equate to risk, source: @milesdeutscher.

According to @PeckShieldAlert, as the market crashes with BTC down 8.44%, a whale address 0xddf7...8ce5 was liquidated on Aave for $14.4M worth of cbBTC; source: @PeckShieldAlert on X. Based on this reported on-chain liquidation, traders should monitor Aave liquidation queues, cbBTC pool liquidity, and slippage for potential continuation risk and forced deleveraging pressure; source: @PeckShieldAlert on X.

According to @lookonchain, an unidentified trader referred to as BitcoinOG shorted BTC and ETH ahead of the recent market crash and profited by more than $160 million, highlighting whale-scale short positioning before the sell-off, source: Lookonchain on X x.com/lookonchain/status/1976826746579329399. According to @lookonchain, the post publicly tagged @Trend_Research_ and @Jackyi_ld to inquire about the trader’s identity, indicating that the entity remains unknown at the time of posting, source: Lookonchain on X x.com/lookonchain/status/1976826746579329399. According to @lookonchain, no wallet addresses or exchange position details were disclosed in the post, so precise execution venues or timelines were not specified, source: Lookonchain on X x.com/lookonchain/status/1976826746579329399.

According to @WatcherGuru, less than two weeks after Jim Cramer told investors to buy crypto, the market suffered one of its biggest crashes. Source: Watcher.Guru on X, Oct 10, 2025. For trading, abrupt drawdowns after high-profile calls typically coincide with volatility spikes and cascading liquidations on derivatives venues, amplifying downside for leveraged positions. Source: Binance Futures documentation on liquidation and auto-deleveraging. Practically, de-risk by lowering leverage, using limit orders to mitigate slippage when liquidity thins, and monitoring funding rates and open interest for signs of crowded positioning. Source: CFTC customer advisories on digital asset trading risks and Binance Academy guides on funding rates and open interest. While some may frame this as an inverse Cramer signal, note that Tuttle Capital launched ETFs SJIM and LJIM to express such views, highlighting interest but not guaranteeing persistent alpha. Source: Tuttle Capital Management announcement March 2023.

According to @KookCapitalLLC, while traditional stocks show stability, the cryptocurrency market is experiencing sharp declines, particularly among altcoins, which he describes as a 'wasteland' (Source: Twitter, June 18, 2025). For traders, this divergence signals increased risk in altcoin markets and suggests a shift in capital flow away from speculative crypto assets. The relative strength in stocks versus the weakness in altcoins like ETH and SOL may indicate that investors are favoring traditional assets over high-volatility digital currencies. Traders should monitor correlations between equity markets and major cryptocurrencies like BTC for clues on broader market sentiment and consider tighter risk controls when trading altcoins during periods of sector-wide weakness.

According to Crypto Rover, the crypto market experienced $335 million in liquidations within 60 minutes following news of Israeli strikes on Iran (source: @rovercrc, Twitter, June 13, 2025). This sudden liquidation wave indicates heightened volatility in major cryptocurrencies like BTC and ETH, as traders reacted swiftly to geopolitical tensions. The rapid cascade of forced sales underscores the sensitivity of digital assets to global conflict, impacting both leveraged positions and spot market sentiment.

According to Milk Road, a major crypto crash can result in a 70% loss of capital, highlighting the extreme volatility and risk in the cryptocurrency market (source: Milk Road, May 27, 2025). For traders, these significant downturns underscore the importance of robust risk management, diversification, and stop-loss strategies to mitigate portfolio damage during rapid price declines. Understanding such historic drawdowns is crucial for both short-term and long-term trading decisions, especially as crypto market volatility can surpass that of traditional assets.

According to Mihir (@RhythmicAnalyst), there is a question regarding whether the crypto market might experience a crash or reach new lows, suggesting traders should be cautious and consider risk management strategies.