October 10 and 11, 2025, marked the largest cryptocurrency market crash in history, with over $19 billion in leveraged positions liquidated across exchanges, erasing funds from traders who got "rekt." The crash was triggered by former President Donald Trump's announcement of imposing 100% tariffs on Chinese imports, causing Bitcoin to plummet from $122,000 to as low as $104,000 within hours, while Ethereum and smaller cryptocurrencies fell even harder, some by 30% or more.
In response, Binance, one of the most affected exchanges, announced "The $400 Million Together Initiative" on October 14, 2025. This industry recovery and confidence-building plan includes $300 million in token vouchers ranging from $4 to $6,000 each for eligible users who incurred forced liquidation losses of 30% or more of their net assets during the crash, with distribution starting 24 hours post-announcement on October 15. Additionally, $100 million is allocated for a low-interest loan fund to support institutional users severely impacted, with applications processed through dedicated account managers.
Binance's official statement emphasized, "We expect this to inject momentum into ecosystem participants’ recovery, alleviate liquidity pressures, and maintain stable operations for ecosystem partners." The liquidation event, referred to as "Black Friday," affected 1.6 million accounts, mostly long positions, and saw stablecoins like Ethena’s USDe briefly lose their peg, dipping to 65 cents on Binance due to technical glitches and low liquidity. Analyst YQ detailed on X how market makers pulled back, creating a liquidity vacuum that turned a sell-off into a cascade, leading to auto-deleveraging on platforms like Hyperliquid and Bybit, which reported $1.1 billion in short positions closed.
On October 14, crypto liquidations reached $624 million as Bitcoin lost price support, with traders increasing hedging through options. Binance's efforts aim to rebuild market confidence and inject liquidity back into the ecosystem.
