Preface

In a historic sell-off, the cryptocurrency market recently faced a significant event where more than 1,000 wallets on Hyperliquid were completely liquidated. This situation emerged following U.S. political maneuvers, specifically an announcement from President Trump imposing further tariffs on Chinese products. The decision played a critical role in unsettling investors globally and led to a momentous drop in crypto valuations. Such large-scale financial upheaval underlines the ongoing vulnerability and unpredictability in crypto markets, raising concerns over economic stability and trader confidence in these digital assets.

Lazy bag

The sell-off resulted in over $1.23 billion in losses on Hyperliquid. Some 6,300 wallets are now in deficit, with 205 exceptions each losing more than $1 million.

Main Body

The crypto market recently witnessed what is considered one of the most intense liquidation events in its history—all eyes were on the Hyperliquid platform, where over 1,000 wallets got completely liquidated following U.S. governmental actions. The announcement by President Donald Trump about imposing additional tariffs on Chinese imports acted as a catalyst, causing a broad downturn across multiple asset classes. Over $1.23 billion in trader capital was erased from Hyperliquid alone, with the crypto market suffering a collective loss exceeding $19 billion in just 24 hours.

Diving deeper into the numbers, data gathered by Lookonchain suggests that out of a total of 6,300 wallets now painted red, 205 have endured losses that surpass $1 million, while more than 1,000 accounts reported losses of at least $100,000 each. This chain reaction began with the investor nervousness triggered by the geopolitical tensions, which subsequently led to Bitcoin falling briefly below $110,000 and Ethereum dipping under $3,700.

Globally, this event marks the largest single-day liquidation in cryptocurrency history. Despite the reporting lag at exchanges such as Binance, CoinGlass has indicated that the liquidation amounts could be substantially higher. Based on data observed by CoinDesk, the net result saw the top 100 traders on Hyperliquid accumulate profits of $1.69 billion, while the leading losers collectively dropped $743.5 million.

An extremely successful actor in this scenario was a wallet identified as 0x5273...065f, posting gains exceeding $700 million through short selling positions. Meanwhile, a major loser, “TheWhiteWhale,” reported losses of $62.5 million. Notable personalities in the crypto sphere, including Jeffrey Huang, popularly known as Machi Big Brother, also tasted significant losses, forfeiting nearly $14 million.

Recent geopolitical maneuvers and resulting financial repercussions point toward rising global economic instability. With a lingering U.S. government shutdown stalling essential economic data, market participants are navigating potential blind spots amid increasing geopolitical risks.

On a further note, the trading volume for centralized exchanges increased notably, with a surge of 7.58% to $9.72 trillion in a month, highlighting intensified market activity. Specifically, the Gate exchange gained prominence through a significant rise in trading volume, thus reshaping the competitive landscape by surpassing Bitget.

Looking forward, ARK Invest has projected optimism for Bitcoin fundamentals and on-chain vigor, driven primarily by increasing institutional engagement and favorable monetary policies. However, as we journey further into the year's final quarter, the market's cyclical timing suggests that stakeholders maintain an advised sense of caution.

Key Insights Table

Aspect	Description
Historic Liquidation Event	Largest liquidation in crypto history with loss exceeding $19 billion in 24 hours.
Market Impact	6,300 wallets in deficit, 205 losing over $1 million each.

Last edited at：2025/10/11