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Binance Altcoin Crash Triggers $850 Billion Loss Amid System ...
2025-10-12 22:55:10
Finance
Crime
Economy

Binance Altcoin Crash Triggers $850 Billion Loss Amid System Vulnerabilities

The recent dramatic crash of several altcoins on Binance has raised alarms across the crypto community. Automatic selling tied to cross-margin positions triggered a brief plunge to zero for assets like ATOM and IOTX, compounded by trading system overloads and account freezes.

This incident resulted in a staggering $850 billion market cap loss and nearly $20 billion in liquidated positions. Binance's leadership has acknowledged the turmoil and committed to compensating users who suffered verifiable losses.

Reports suggest that the crash may have been a coordinated exploit, revealing vulnerabilities in Binance's margin system. Analysts are questioning official loss estimates, positing that the financial damage could reach as high as $400 billion.

This event, characterized by mass liquidations, has drawn unsettling comparisons to the infamous LUNA collapse.

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Trump's Tariff Announcement Triggers $19 Billion Crypto Market ... Collapse

The recent turmoil in the cryptocurrency market has been significantly influenced by U.S. President Donald Trump's announcement of a 100% tariff on Chinese goods. This decision triggered a severe market reaction, leading to a staggering liquidation of over $19 billion in leveraged positions, marking one of the largest single-day declines in crypto history. Bitcoin and major altcoins like Ethereum and XRP faced steep losses, with Bitcoin alone dropping by more than 10%. Analysts suggest that while traders attribute the market's downfall to Trump's tariffs, the underlying issue lies in excessive leverage and risk. Major exchanges such as Binance and Coinbase struggled under the pressure of the sell-off, experiencing system strain and latency issues. The developments between the U.S. and China continue to play a pivotal role in shaping trading behaviors, as investors remain cautious in the wake of this significant economic shift.

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The announcement of a 100% tariff on China by US President Donald Trump sent shockwaves through the cryptocurrency market, leading to a drastic decline in Bitcoin's price, which plummeted to $102,000. This sudden move reignited fears of trade tensions, reminiscent of earlier tariff announcements that had similarly affected market stability. As a result, over $2 billion in long positions were liquidated, reflecting widespread panic among investors. Other cryptocurrencies like Ether and Solana also faced significant losses, contributing to an overall market capitalization drop of nearly 15%. Exchanges such as Binance and Coinbase entered emergency modes to manage the sell-off, highlighting the strain on trading systems. Despite the turmoil, some analysts see potential for recovery, citing historical trends that suggest Bitcoin may rebound by up to 21% in the coming week. As global markets reacted with declines in stock indices and a shift towards safe-haven assets, the uncertainty prompted investors to reassess their strategies in an ever-evolving economic landscape.

Read 1 more recent news on this topic

The press radar on this topic:

The Street
15. Oktober 2025 um 20:08

Binance to compensate users after technical snag during $19B market crash

Binance has pledged to compensate users affected by technical issues during a $19 billion market crash on Oct. 10. The crash was triggered by Donald Trump's announcement of 100% tariffs on China, causing a mass exodus from risk assets and one of the largest crypto wipeouts in history. Binance co-founder Yi He apologized for disruptions and invited affected users to register their losses with customer service. Over $19.3 billion in leveraged positions were liquidated within 24 hours, marking one..
The Street
14. Oktober 2025 um 19:05

Analyst warns market crash wiped out $400B

Crypto analysts are challenging official data on the Oct. 10 market crash, suggesting a potential loss of $300B to $400B, significantly higher than the reported $19B. Binance's API throttling may have contributed to underreporting, according to an automated analytics account. The event was described as the largest liquidation in crypto history, with 1.6 million traders affected and long positions wiped out at a 7:1 ratio to shorts.
Cointelegraph.com News
12. Oktober 2025 um 14:20

Why did some altcoins on Binance crash to zero?

Several altcoins on Binance, including ATOM, IOTX, and ENJ, briefly hit zero in value due to automatic selling of collateral tied to cross-margin positions. The crash was exacerbated by overloaded trading systems, frozen accounts, and delayed trades. The total market capitalization dropped by approximately $850 billion within hours, with nearly $20 billion worth of crypto positions liquidated. Binance's CEO apologized for the issues and announced that the platform will compensate users with ve..
Crypto.news
12. Oktober 2025 um 15:00

Binance crash may have been a coordinated exploit: report

A recent report by Wu Blockchain suggests that the October 11 crypto market crash may have been a coordinated exploit, not a random sell-off. Attackers allegedly manipulated collateral assets on Binance's Unified Account margin system, causing mass liquidations and estimated losses of $500 million to $1 billion. The vulnerability was created by Binance allowing certain types of derivatives as margin collateral and relying on its internal pricing mechanism rather than hard-pegged values. The in..
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