Crypto just saw its largest-ever crash by liquidations—when exchanges force-close positions because traders run out of margin.
It’s basically getting kicked out of the casino when the house realizes you’re out of chips.
And it’s worse than we first thought.
The headline number was $20B in liquidations on October 10.
But that figure is likely much higher.
Binance—the world’s largest exchange—only reports a single liquidation event per second. In practice, if $100,000 of liquidations occur within the same second across multiple accounts, Binance still logs just one event.
Per their own developer notes.
What does that imply?
That the $20B tally is significantly understated.
Realistically, this washout was likely at least $30B.
Here’s the exciting part:
The more pain that’s absorbed, the more fuel there is for the inevitable rebound.
Meanwhile, Bitcoin barely flinched—it's still trading in the six figures.
In a note to my members last week, I wrote that this crash created the best opportunity I’ve seen since FTX collapsed in November 2022.
The difference now is that the strongest tokens have institutional partnerships, real-world utility, and growing network effects.
That’s where the next leadership comes from—and it’s already taking shape.
I’ll be live with Steve Strazza this Thursday at 3:30pm ET. Click here to sign up.
If you register, you’ll also get my free report on the five cryptos I’m not buying on this dip—because avoiding the traps is just as important as finding the winners.
From where the sun rises first,
Louis Sykes
Senior Crypto Analyst, All Star Charts
