The largest-ever 10/11 crypto market crash, as some name it, erased over $500 billion in whole market cap and triggered practically $20 billion in liquidations of prime crypto property. Lower timeframes charts revealed Bitcoin broke to a low of $104,582 and Ethereum to $3,460. The crypto group primarily blames Binance crypto trade, Wintermute market maker, and US President Donald Trump for the flash crash.
Wintermute Sent Massive Bitcoin Before the Crypto Market Crash
The crypto group blamed Binance-linked market maker Wintermute, discovering itself at the middle of rising controversy amid allegations of market manipulation by main gamers once more. This is available in response to over $700 million deposited by the market maker in the Binance scorching pockets earlier than the crash.
In September, crypto merchants accused Binance of inflicting a market crash by sending big quantities of Solana, Ethereum, and Bitcoin to Wintermute. Right after the transfers, costs fell sharply and worn out $1.7 billion as traders saw massive liquidations.
In response to $700 million transfer by Wintermute, EachCryptoDevice’s Hanzo stated, “Binance just reminded everyone who really runs this market, this crash wasn’t about Trump, tariffs, or macro, that was noise, the real story happened inside the books.”
He added that order books on Binance went hole, with no bids, no partitions, and a free fall taking place. Wintermute stopped defending the worth and pulled liquidity, inflicting ATOM and SUI to crash to $0.001 and 0.56, respectively. Binance customers reported that the platform stopped working. Stop orders froze, restrict orders hung, and solely liquidations had been executed.
Targeted Attack on Crypto Exchange Binance
Uphold head of analysis Martin Hiesboeck claimed the crypto market crash occurred after a focused assault that exploited a flaw in Binance’s Unified Account margin system. Using property like USDe, wBETH, and BNSOL as collateral induced the difficulty, as liquidation costs had been primarily based on Binance’s personal risky spot market.
USDe fell to $0.65, inflicting a cascading margin collapse that triggered large liquidations, together with these of main market makers. “The attack was timed to exploit a window between Binance’s announcement of a fix and its implementation, resulting in estimated losses between $500 million and $1 billion,” he added.
ElonTrades blamed Binance’s design flaw as attackers well timed exploited the crypto trade’s inside pricing system, amplified by a macro shock and systemic leverage. Attackers opened $1.1 billion in BTC and ETH shorts on Hyperliquid earlier than the crypto market crash, making $192 million in revenue.
Yi He and Richard Teng apologized to the public concerning the depeg difficulty. Also, Binance promised compensation for victims of USDe and BNSOL depeg losses.
CZ is in harm management, is now retweeting the largest recognized scammer from Solana.
It is 100% sure Binance was accountable for the market crash.
Get your funds off Binance instantly. pic.twitter.com/Y7CSMQPTrV
— curb.sol (@CryptoCurb) October 12, 2025
Trump Triggered the Biggest Crypto Market Crash
US President Donald Trump’s Truth Social publish about large tariffs on China sparked panic resulting from renewed commerce battle hints. Stock markets began dipping first, adopted by the crypto market crash.
Later, Trump formally introduced 100% tariffs on all Chinese imports beginning November 1. According to Bull Theory, this induced the broader market crash to deepen. It felt structural as if a fund or desk was compelled to unwind positions suddenly.
DeFiance Capital’s Kyle shared how Trump family-backed WLFI “magically” dumped 30% earlier than the crash. He claimed insiders knew and bought WLFI first and went to quick the market on Hyperliquid. World Liberty Financial bought WLFI at dips throughout the crypto market crash.
In different phrases, Trump’s insiders acquired their luggage crammed on the market crash and he desires issues to be higher now.
Brazen crime! https://t.co/OtpHBn74Ai
— Adam Cochran (adamscochran.eth) (@adamscochran) October 12, 2025
Prices had been buying and selling vastly in another way on Coinbase throughout the crash. For occasion, DOGE nuked to $0.09 on Binance, OKX, Bybit, and Kraken, however was buying and selling increased on Coinbase. The crypto group questioned if their market makers had been operating a totally totally different playbook or defending the books. Users reported going through problem in monitoring costs, buying and selling, or accessing dwell updates.
