In the 24 hours spanning Oct 10 (UTC), crypto endured the largest single-day liquidation in history: roughly $19B in positions wiped and ~1.6M traders forced out, as tariff threats against China triggered a swift, cross-asset risk-off swing

Crypto derivatives just suffered a historic reset. Across major venues, about $19 billion in leveraged positions was liquidated within a single day — the largest on record — with an estimated ~1.6 million accounts affected. Several desks logged a first-hour cascade in the $3–7B range, underscoring how quickly margin calls can snowball when liquidity thins.

The spark: tariff shock and a scrapped summit

The wipeout followed a sharp escalation in U.S.–China tensions. President Donald Trump threatened a “massive” hike in tariffs on Chinese imports and indicated there was no reason to proceed with an upcoming meeting with President Xi — rhetoric delivered as Beijing tightened export controls on rare earths. Risk assets recoiled, volatility spiked, and crypto sold off in lockstep with equities.

By the numbers: why this one was the biggest

Total liquidations (24h): ≈ $19B, a new all-time record for the asset class.
Traders affected: ≈ 1.6M accounts closed out across exchanges.
Open interest reset: ≈ $9.5–10B in OI erased alongside the liquidation wave.
Data source of record: Aggregators (e.g., CoinGlass) corroborated the magnitude and cadence of the flush.

Price action and microstructure

Bitcoin (BTC) slid to an intraday low near $104,800 before stabilizing, while Ether (ETH) dropped into the low $3,600s. With books thin and basis compressing, forced long unwinds accelerated — funding flipped negative, spreads widened, and liquidations beget more liquidations.

Why it unraveled so fast

Positioning was crowded: BTC had set fresh highs earlier in the week, leaving longs vulnerable to a macro headline.
Headline risk was binary: Tariff threats and a canceled leader-level meeting revived trade-war playbooks (flight to safety, sell beta).
Liquidity stepped back: As volatility popped, some market makers reduced size, amplifying slippage and cascades.

What to watch next (next 48–72 hours)

Policy tape: Any executive action detailing tariff size, scope, and timing, plus signals of Chinese retaliation on rare earths.
Cross-asset tells: Equity breadth, semiconductors, EM FX, and the dollar path; sustained stress there typically caps crypto beta.
Derivatives health: Liquidation prints and OI rebuild; another multi-billion flush without macro relief would argue for patience.

Scenarios

Formal escalation: A concrete tariff docket or broader export limits keep risk premia elevated; crypto underperforms until clarity arrives.
De-escalation via back channels: Cooler rhetoric and no new measures invite mean reversion; ranges rebuild as funding normalizes.
Staggered uncertainty: Mixed messages keep chop in play; watch funding, basis, and stablecoin flow for early direction.

Bottom line

Oct 10–11 delivered the largest single-day liquidation event in crypto’s history — ≈$19B wiped and ~1.6M accounts closed — catalyzed by tariff brinkmanship and a scrapped Trump–Xi meeting. The move was macro-led, not an on-chain failure. With leverage partly flushed, two-way volatility is likely as traders watch Washington–Beijing headlines and the OI rebuild. Respect the new ranges; separate forced flow from conviction flow.