Crypto markets entered October 2025 sitting on a fragile edge. Prices looked strong on the surface, and many people expected a rally, though leverage underneath told a different story. When the market finally slipped, the reaction was fast and unforgiving. Between October 10 and October 11, roughly $19 to $20 billion in leveraged positions were wiped out in about 24 hours, marking the largest single liquidation event in crypto history.
StarPlatinum, a crypto commentator on X, described the event as a textbook example of leverage meeting thin liquidity at the worst possible moment. His analysis does not frame the crash as random panic, but as a cascade driven by structure, timing, and incentives lining up all at once.
What you'll learn 👉
October 2025 Flash Crash Revealed Extreme Leverage And Thin Liquidity
Just some weeks before the wipeout, Bitcoin had printed a new all-time high above $126,000. That rally pulled traders into heavily leveraged long positions across derivatives platforms. Liquidity, however, did not expand at the same pace. When prices began to soften, there was little depth to absorb forced selling.
Once liquidation engines switched on, the process fed into itself. Closing positions pushed prices lower, lower prices triggered more liquidations, and each wave hit even thinner order books. The result was not a slow drawdown, but a sharp liquidation cascade compressed into a single trading day.
Binance was probably behind that massive October dump
— StarPlatinum (@StarPlatinum_) January 28, 2026
This is my view and opinion based on onchain data, exchange notices, and timing:
On Oct 6, Binance publicly said it would change how it prices BNSOL and wBETH on Oct 14.
That created a 4-day window (Oct 10–14) where thin… pic.twitter.com/mbcTpSKNEN
Macro Shock Provided The Spark That Set Off The Cascade
A sudden macro headline appears to have acted as the initial trigger. On October 10, Donald Trump unexpectedly announced a 100% tariff on a broad range of Chinese imports. Global risk markets reacted immediately, and crypto followed without delay.
That announcement arrived at a moment when leverage was already stretched. As prices dipped, stop losses fired across venues, pushing the market into forced selling mode. What began as a policy shock quickly turned into a full scale liquidation event spanning futures, margin, and lending markets.
Why Onchain Data Puts Binance At The Center Of The Timeline
Attention later shifted toward Binance, based on a series of timing related observations rather than direct accusations. On October 6, Binance announced it would change how it prices BNSOL and wBETH on October 14. That notice created a narrow window from October 10 to October 14 where collateral tied to those assets could face stress under thin liquidity.
StarPlatinum pointed to a tight 40-minute window on October 10 when unusual pricing appeared. USDe on Binance briefly traded as low as $0.6567, while other venues remained closer to $0.90 to $0.95. wBETH dropped to around $430 only on Binance, representing roughly an 88% deviation from ETH parity. BNSOL also flushed sharply to about $34.9. These dislocations did not show the same severity elsewhere.
Liquidity Gaps And Flow Patterns Deepened The Questions
Onchain data showed more than $10 billion moving into exchange hot wallets during the 24 to 48 hours before the crash. Wallets labeled to Binance saw notable activity, while some major market makers appeared absent from the affected books during the critical window.
StarPlatinum also noted that Binance later paid about $283 million to users and moved its oracle fix forward from October 14 to October 11. That response helped stabilize conditions, though it also reinforced questions about whether structural risks were fully understood ahead of time.
Read Also: Silver Price Hits $120 While Gold Reaches $5,600 in Historic Dual Rally – What’s Behind the Pump?
October 2025 did not offer simple answers. It did expose how leverage, liquidity, and timing can combine into a single violent event. Analysts like StarPlatinum continue to track similar patterns, suggesting unresolved risks may still sit beneath the surface.
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