Liquidation is the moment when a crypto platform automatically closes a leveraged position when losses exceed the deposited margin. On October 10, 2025, Donald Trump’s tariff announcement against China triggered an unprecedented liquidation cascade, sending bitcoin from $122,500 down to $107,000 in just a few hours, while some altcoins lost 40 to 80% during the session. According to Coinglass data, $19.13 billion in positions were liquidated within 24 hours, affecting over 1.6 million traders, roughly nine times the previous daily record. Perpetual contracts concentrate most of the crypto market volume, making this type of cascade more structural than accidental. Experts recommend using modest leverage, systematically placing stop-loss orders, and only depositing as margin what one can afford to lose entirely.
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