Crypto Crash: Historic $19 Billion Liquidation Triggers Bitcoin Market Crash
Published By
Aryan
Approved By
Chirag AroraPublished On
15th Oct, 2025Updated On
16th Oct, 2025Min Reading
10 Tech Research Today
The cryptocurrency market meltdown had a wild ride of unprecedented magnitude not long ago, resulting in what many analysts are now referring to as the largest crypto crash ever. The whole crypto liquidation event that caused the crash amounted to more than $19 billion, a number that is significantly larger than the combined total of all previous market crashes.
To give some perspective, the whole Bitcoin market crash was almost nine times greater in magnitude than the February 2025 crash and twenty times bigger than the March 2020 pandemic sell-off. There are even some analysts who put the actual liquidation number at more than $19 billion, pointing out that some centralized exchanges do not provide full data owing to their limitations.
Analysts suggest that the crypto ecosystem now faces a more transparent but fragile trading structure, making investors seek knowledge on how to buy cryptocurrency safely during market uncertainty.
The last significant liquidation event was at the very end of the 2021 bull market when there were $10 billion in liquidations. During this time, the amount related to the crypto crash was almost double, even though Bitcoin had only declined by 12%. This led to the traders who had been patiently building up their positions suffering great losses, thus qualifying this event as the most devastating of the crypto liquidation events in market history.
One person, however, was lucky enough to make a whopping $92 million by properly managing his timings and taking advantage of the volatility. Such spectacular trades often arise from deep technical understanding and risk control, skills that modern traders try developing before they invest in the best crypto for long-term growth.
Jarrett Jin Connection: Mysterious Whale Identity Revealed
The blockchain investigators' research highlights the possibility that the whale behind the enormous crypto profits may be linked to the controversial personality of Jarrett Jin. The hyperliquid liquidation investigation scrutinized wallet addresses by means of ENS domains together with transaction patterns and was successful in connecting them to Jin's prior dealings with major platforms like HTX and Binance.
Jin had earlier been with BitForex, an exchange that was reportedly involved in a $57 million exit scam.
The beginning of the altcoin season is dependent on a drop in Bitcoin’s dominance below its 100-week moving average while Bitcoin’s price is in a state of indecision. The current market structure infers the next three months (October, November, and December) will be crucial in deciding whether or not we have a true altcoin season.
There has been a substantial drop in the crypto market, yet positive funding rates continue across all exchanges barring Bybit which signifies that many traders are still optimistic. This situation is not favorable for the altcoin season, as it implies that there is not enough bearish sentiment, which is usually the case before the major rallies.
Bitcoin Technical Analysis: $116,700 Support Level
Price changes in the past week correspond with the prior analysis, which said there would be a fluctuation towards the range of $115,000-$117,000, and then a possible further correction.
Event Date | Liquidation Amount | Bitcoin Price Drop | Affected Traders | Primary Trigger | Recovery Time |
October 10, 2025 | $19 billion | 12% ($122,500 ? $104,600) | 1.6 million | Trump China Tariff (100%) | 3 days (partial) |
November 2021 | $10 billion | 8.5% | 850,000 | Leverage Deleveraging | 2 weeks |
March 2020 | $1 billion | 50% | 200,000 | COVID-19 Pandemic | 6 months |
February 2025 | $2.1 billion | 6% | 400,000 | Regulatory FUD | 1 week |
May 2022 (Luna/UST) | $3.5 billion | 15% | 600,000 | Algorithmic Stablecoin Collapse | Ongoing |
November 2022 (FTX) | $8 billion | 25% | 1.2 million | Exchange Bankruptcy | Ongoing |
Parameter | Details | Status |
Total Creditors Affected | 4.3 million | Confirmed |
Voting Creditors | 143,000 | Voted in Favor |
Approval Percentage | 95.7% | Approved |
Court Approval Date | October 13, 2025 | Singapore High Court Sanctioned |
Platform Restart Timeline | 10 business days | In Progress |
Fund Recovery Amount | $195.7 million | Recovery Plan Active |
Hack Date | July 2024 | Incident Resolved |
Original Loss Amount | $230 million | Partial Recovery Expected |
Investigation Aspect | Details | Compliance Requirement |
Targeted Traders | 400+ High Net Worth Individuals | Mandatory Disclosure |
Investigation Period | 2022-2025 | Ongoing Investigation |
Tax Rate Applied | 30% | Full Tax Payment |
TDS Rate | 1% | Transaction Reporting |
Primary Focus | Offshore Trading and P2P | Complete Records |
Estimated Tax Evasion | $42 million | Immediate Settlement |
Legal Framework | Section 270A and Black Money Act | Legal Compliance |
Penalty Structure | Up to 300% penalty | Penalty Payment |
On October 13, 2025, the Singapore High Court approved the WazirX recovery update.This approval marks a very important milestone in the road for fund recovery for the users since the July 2024 hack in which the exchange has suffered losses of over $230 million. The WazirX scheme arrangement gives a structured path forward for the aggrieved creditors.
Expect platform operations to restart within 10 business
Token distributions shall commence upon restart of the platform
Approximately 95.7% creditors (143,000 votes representing $195.7 million) voted in favor
A total of 4.3 million creditors affected by the cyberattack
Indian tax authorities have launched a full-blown Binance India tax investigation into more than 400 high net-worth individuals suspected of being involved in tax evasion through Binance-related trading activities during the period 2022-25. The ongoing crypto regulation and tax probe in India focuses on disclosure norms for offshore trading. This Binance India tax probe concentrates on offshore trading activities and P2P transactions.
The Indian tax investigation on Binance covers:
Many traders failed to report their crypto holdings kept in overseas wallets.
Data-Sharing Agreement Being Enabled due to Binance's FIU Registration in India
Penalties under Section 270A and Black Money Act may apply.
Indian law stipulates: Income from Cryptocurrency shall be taxed at 30%, and further, 1% TDS shall be deducted on its transactions. The tax investigation of Binance in India focuses on the theory that any citizen does not get a tax shelter out of the foreign exchange.
The recent crypto crash emphasizes the criticality of:
Proper risk-reward ratios
Position sizing strategies
Stop-loss implementation
Emotional discipline in trading
Many traders who survived this crypto liquidation event did so because they stuck to good risk management principles-they limited their exposure to a predetermined level, and therefore did not get wiped out.
The bitcoin crunch of 2025 and subsequent crypto liquidation event are a Senate Auditor's picturesque for the advanced risk management strategies. While in this downturn, the whale-scale profit-makers like that mysterious speculator operand Hyperliquid worked to solidify how a crisis becomes an opportunity through right timing and positioning in the market. It also stands as a case study for anyone learning what Bitcoin mining is and how network economics play a core role in price recovery after major corrections.
Remembering these lessons learned from one massive crypto crash would be worthwhile for traders prepping for the next altcoin season. The WazirX scam experience also shows how exchange fiascos can harm long-term holdings, while Binance India's tax investigation serves as a reminder to all traders of their compliance obligations.
ClipsTrust Review: ClipsTrust offers end-to-end analysis and education services in the cryptocurrency market, providing traders with all the tools they need to navigate volatile market situations like the recent crypto crash and liquidation events.
A solid background in how regulatory developments affect the market, such as tax investigations into Binance India or exchange recovery in the WazirX scheme arrangement, will carry one a long way toward any decision-making.
Who Benefits: Especially for the cryptocurrency traders interested in understanding market dynamics during crypto liquidation events, investors who are aiming to sharpen their risk management strategies against crypto crash situations, plus those who would like to learn from prominent market events such as hyperliquid liquidation cases to better instill trading discipline and further enable them to make sound decisions in times of market volatility and potential altcoin season.
Twitter and X Users: Large-scale concern over centralized exchange practices and auto-liquidation mechanisms.
Reddit Crypto Forums: Mixed feelings, with seasoned traders deeming it "necessary deleveraging" while new traders panicked.
Telegram Trading Groups: Feverish debates over the allegation of insider trading concerning the unknown whale.
Q1: What caused the $19 billion crypto liquidation?
A: The liquidation was initiated when Trump announced a 100% tariff on imports from China. Panic selling ensued, forcing over 1.6 million leveraged traders to liquidate their positions.?
Q2: How does this compare to previous crash events in crypto?
A: This has been the largest liquidation that has ever taken place in a single day in the history of crypto - 9 times larger than the February 2025 Crash and 19 times bigger than the March 2020 selloff occasioned by the pandemic.?
Q3: Who was that mysterious whale that pocketed $92 million?
A: According to blockchain investigators, the trader might be a relative of Jarrett Jin, a man with controversial connections to past exchange dealings, including BitForex.?
Q4: When will WazirX users get their money back?
A: The scheme was approved by the Singapore High Court on October 13, 2025. Platform operations are slated to resume within 10 business days of the date of approval, followed by the distribution of tokens.
Q5: What are tax considerations for cryptocurrency traders in India?
A: Income generated through cryptocurrencies in India is taxed at 30%, along with 1% TDS. More than 400 traders are going through a probe for possible tax evasion through Binance trading.
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