"That day, crypto traders saw more than $19 billion in leveraged positions-or bets where investors wager more capital than they have on hand-evaporate after President Donald Trump threatened China with another round of tariffs, according to data from the crypto analytics site CoinGlass. "I'm just looking at it and praying that it's good," Yan said, referring to his exchange's systems. Within one hour, using his "every brain cell" to analyze the data, he was confident that the platform had worked as intended-surviving a stress test where thousands of traders lost money and others who were shorting the market cashed in."
"In coming weeks, the crypto industry would come to refer to the wipe-out of Oct. 10 as a flash crash, one that was the largest liquidation event ever tracked by CoinGlass and an episode whose fallout still reverberates throughout the industry two months later. It was also one of the clearest signs yet that Hyperliquid had grown to become a crypto juggernaut."
"According to CoinGlass, the platform liquidated more than $10 billion worth of positions that day, a figure that far outstripped the $4.6 billion and $2.4 billion liquidations that took place on longtime crypto exchanges Bybit and Binance, respectively. (The $10 billion figure refers to the total amount of the leveraged positions liquidated; the actual funds traders lost on their bets was lower)."
An early-October market shock erased more than $19 billion in leveraged crypto positions after President Donald Trump threatened new tariffs on China, according to CoinGlass. Hyperliquid's systems handled the turmoil as its founder monitored alarms and data, quickly confirming platform stability. The exchange liquidated over $10 billion in positions that day, surpassing Bybit's $4.6 billion and Binance's $2.4 billion liquidations. The event became the largest liquidation recorded by CoinGlass and a flash crash whose fallout persisted for months. Hyperliquid Labs operated with just 11 employees while expanding into a major competitor among crypto exchanges.
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