The cryptocurrency market experienced a severe correction on October 29, 2025, resulting in over $295 million in liquidations, primarily impacting long traders. This event unfolded rapidly, with some reports indicating the bulk of liquidations occurred within just three hours, driven by macroeconomic shocks and automated selling on major exchanges like Binance, OKX, Hyperliquid, Bybit, and MEXC.
Data from analytics platforms such as CoinGlass revealed that 79% of the liquidated positions were long, exacerbating price declines and increasing market volatility. Key cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), and Solana (SOL) faced significant losses, with altcoins like SUI also affected, suffering declines of up to 70%. The liquidations were part of a broader deleveraging pattern, contributing to a total of over $383 million in liquidations within a single day.
Jonathan Man, Portfolio Manager at Bitwise, described the event as "the worst liquidation event in crypto history," noting that more than $20 billion was wiped out as liquidity vanished and forced deleveraging took hold. The ripple effects included contracting liquidity in DeFi sectors, though no sudden spikes in staking withdrawals were reported, providing some sector stability.
Historical parallels were drawn to similar events in March 2020 and November 2022, highlighting the vulnerability of leveraged markets. Macroeconomic factors, such as former U.S. President Donald Trump's announcement of a 100% tariff on Chinese goods, were cited as potential triggers, underscoring how global trade tensions can influence crypto markets. This event has raised concerns about regulatory scrutiny on leverage and the need for technological advancements to mitigate overexposure risks in trading systems.
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