TLDR
- Over 1,000 wallets on Hyperliquid lost everything during the crypto sell-off.
- A global tariff announcement triggered a $19 billion crypto market crash.
- More than 6,300 wallets saw losses, with 205 suffering over $1 million each.
- Bitcoin and Ether prices dropped sharply as geopolitical risks intensified.
A major sell-off in the cryptocurrency market has led to the largest liquidation event in history, wiping out over $1.23 billion in capital on Hyperliquid alone. More than 6,300 wallets have been affected by this sudden market downturn, with significant losses for many traders. This event, driven by external economic factors, has left crypto markets in turmoil as investors face severe losses across multiple platforms.
Hyperliquid Sees Unprecedented Losses
On October 11, 2025, over 1,000 wallets on Hyperliquid were completely liquidated, resulting in over $1.23 billion in lost trader capital. The data, compiled from Hyperliquid’s leaderboard, reveals that 6,300 wallets are now in the red.
Among these, 205 accounts suffered losses exceeding $1 million. This sell-off triggered a massive price drop in major cryptocurrencies such as Bitcoin and Ether, causing widespread panic.
The liquidation event, which occurred within 24 hours, is considered the largest single-day crypto liquidation by dollar value. The losses were particularly severe among highly leveraged positions. Over 1,000 accounts were reported to have lost at least $100,000, reflecting the market’s volatility during this period.
U.S. Tariff Announcement Drives Market Downturn
The sudden drop in crypto prices coincided with an announcement from U.S. President Donald Trump regarding new tariffs on Chinese imports. The 100% tariff hike spooked investors across various asset classes, resulting in a significant market correction. As crypto traders sought to liquidate positions, Bitcoin dropped below $110,000, and Ether fell under $3,700, leading to a broad market decline.
Crypto investors were not the only ones affected. Traditional markets also saw sharp declines, with the CoinDesk 20 index falling by 15%. This surge in sell-offs led to a collective loss of over $19 billion in the broader crypto market, according to data from CoinGlass. This figure is likely much higher, as Binance, one of the largest crypto exchanges, has yet to release full data on the liquidation event.
Winners and Losers in the Aftermath
While the majority of traders suffered losses, a select group of short sellers profited significantly. The leaderboard data from Hyperliquid shows that the top 100 traders collectively gained $1.69 billion.
In contrast, the top 100 losing traders suffered a total of $743.5 million in losses. The net result was a profit of $951 million for a few traders who had bet against the market.The biggest winner was a wallet known as 0x5273…065f, which made over $700 million from short positions.
On the other hand, one of the largest losers, “TheWhiteWhale,” faced a loss of $62.5 million. Prominent crypto personalities, including Jeffrey Huang (also known as Machi Big Brother), were also among the victims of the liquidation event. Huang’s wallet lost nearly $14 million, leading him to express his resignation on social media.
Market Uncertainty Deepens
The crypto market is facing increased uncertainty, with the ongoing U.S. government shutdown contributing to the volatility. Key economic data releases have been delayed, and the absence of these indicators has left investors uncertain about the future. Additionally, rising geopolitical risks are further compounding the challenges for market participants.
The lack of clear economic data, combined with the global risk-off sentiment, is making it difficult for traders to make informed decisions. The liquidity crisis and the sell-off have shaken investor confidence, leaving many wondering about the stability of the crypto market in the coming months.
