{"id":502753,"date":"2025-10-14T00:47:55","date_gmt":"2025-10-13T23:47:55","guid":{"rendered":"https:\/\/cryptoslate.com\/?p=502753"},"modified":"2025-10-14T11:34:06","modified_gmt":"2025-10-14T10:34:06","slug":"weekend-crypto-black-friday-liquidation-cascade-what-actually-happened","status":"publish","type":"post","link":"https:\/\/cryptoslate.com\/weekend-crypto-black-friday-liquidation-cascade-what-actually-happened\/","title":{"rendered":"Weekend &#8216;Crypto Black Friday&#8217; liquidation cascade: What actually happened?"},"content":{"rendered":"<p>Crypto markets absorbed approximately $19 billion to $20 billion in forced liquidations <a href=\"https:\/\/cryptoslate.com\/trump-tariff-threat-against-china-causes-bitcoin-to-fall-3-807m-in-liquidations\/\">within 24 hours on Oct. 10<\/a>, marking the largest single-day deleveraging event on record.<\/p>\n<p>Hyperliquid processed more than $10 billion, while Binance accounted for roughly $2.4 billion. Altcoins bore the brunt of selling pressure while Bitcoin's drawdown remained comparatively contained.<\/p>\n<p><a href=\"https:\/\/cryptoslate.com\/companies\/bitwise\/\">Bitwise<\/a> portfolio manager Jonathan Man <a href=\"https:\/\/x.com\/0xChaosWalking\/status\/1977038613385789558\">calculated<\/a> that about $65 billion of futures open interest (OI) disappeared across venues during the cascade, resetting positioning to levels last observed in July.<\/p>\n<p>The washout concentrated offshore, as Hyperliquid and <a href=\"https:\/\/cryptoslate.com\/companies\/bybit\/\">Bybit<\/a> absorbed the heaviest liquidation volume, while <a href=\"https:\/\/cryptoslate.com\/companies\/binance\/\">Binance's<\/a> share was smaller than typical for an event of this scale.<\/p>\n<p><a href=\"https:\/\/cryptoslate.com\/companies\/cme-group\/\">CME<\/a> maintained a larger proportion of Bitcoin futures OI through the selloff, and <a href=\"https:\/\/cryptoslate.com\/companies\/coinglass\/\">Coinglass<\/a> data <a href=\"https:\/\/www.coinglass.com\/BitcoinOpenInterest\">now show<\/a> CME, Binance, Bybit, and <a href=\"https:\/\/cryptoslate.com\/companies\/okx\/\">OKX<\/a> as the top Bitcoin futures venues by notional.<\/p>\n<p>Despite the remarkably negative episode, <a href=\"https:\/\/cryptoslate.com\/coins\/bitcoin\/\">Bitcoin<\/a> is only 8% down from its all-time high of $126,000, trading at $115,058.29 as of press time.<\/p>\n<p>Major cap altcoins also registered significant recoveries. <a href=\"https:\/\/cryptoslate.com\/coins\/ethereum\/\">Ethereum<\/a>, <a href=\"https:\/\/cryptoslate.com\/coins\/xrp\/\">XRP<\/a>, and <a href=\"https:\/\/cryptoslate.com\/coins\/dogecoin\/\">Dogecoin<\/a> are all up by 10% since Oct. 10. <a href=\"https:\/\/cryptoslate.com\/coins\/bnb\/\">BNB<\/a> is up by 15.6% in the same period, after registering a new all-time high of $1,375.11 on Oct. 13.<\/p>\n<p><a href=\"https:\/\/cryptoslate.com\/coins\/solana\/\">Solana<\/a> is up by 8.3% since the liquidation event, and <a href=\"https:\/\/cryptoslate.com\/coins\/cardano\/\">Cardano<\/a> recovered 13% in the same period.<\/p>\n<h2>Funding and basis compression<\/h2>\n<p>Perpetual swap funding rates flipped negative or pinned near zero across major pairs into and through Oct. 10 and 11.<\/p>\n<p>Additionally, <a href=\"https:\/\/cryptoslate.com\/companies\/glassnode\/\">Glassnode<\/a> flagged aggregate funding at the lowest reading <a href=\"https:\/\/x.com\/glassnode\/status\/1977405370621702365\">since the 2022 bear market<\/a>, confirming a clean deleveraging. Exchange trackers around the trough recorded neutral-to-negative eight-hour prints on Binance, OKX, and Bybit.<\/p>\n<p>Altcoin perpetuals showed an even sharper flip. Solana's eight-hour funding rate fluctuated around -0.23% at multiple intervals on Oct. 11, a rare, broad &#8220;pay shorts&#8221; regime that signals a shift from crowded longs to defensive positioning.<\/p>\n<p>That flip coincided with a collapse in altcoin OI and a sharp basis compression across dated futures, a classic footprint of a leverage purge centered outside Bitcoin.<\/p>\n<p>By late weekend, several trackers showed monthly contracts back near 8% annualized for Bitcoin contracts on Deribit, a swing from mildly overheated to neutral, then a tentative re-steepening that accompanies reduced fragility.<\/p>\n<h2>ETF flows dynamics into the crash<\/h2>\n<p>Farside Investors' data on US-traded spot Bitcoin ETF inflows show heavy net inflows earlier in the week, tapering into the crash, and then flipping slightly negative on Oct. 10.<\/p>\n<p><a href=\"https:\/\/cryptoslate.com\/companies\/blackrock\/\">BlackRock's<\/a> <a href=\"https:\/\/cryptoslate.com\/products\/ishares-bitcoin-trust\/\">IBIT<\/a> brought in $899.4 million on Oct. 7, and $426.2 million on Oct. 8. By Oct. 9, inflows had slowed to $255.5 million from IBIT, while <a href=\"https:\/\/cryptoslate.com\/companies\/fidelity-investments\/\">Fidelity's<\/a> <a href=\"https:\/\/cryptoslate.com\/products\/fidelity-wise-origin-bitcoin-trust\/\">FBTC<\/a> posted a $13.2 million outflow and <a href=\"https:\/\/cryptoslate.com\/companies\/grayscale-investments\/\">Grayscale's<\/a> <a href=\"https:\/\/cryptoslate.com\/products\/grayscale-bitcoin-trust\/\">GBTC<\/a> recorded $45.5 million of redemptions, producing a combined net inflow of nearly $198 million.<\/p>\n<p>On the day of the crash, IBIT inflows dropped to $74.2 million, while other issuers' inflows flipped negative.<\/p>\n<p>As a result, the day's net flow turned negative by $4.5 million, ending a streak of nine consecutive days of positive net inflows. Additionally, although the outflows were small, they marked a departure from the prior three sessions of dip-buying.<\/p>\n<p>The sequence of flows is important. ETF inflows between Oct. 7 and Oct. 8 preceded lighter net buying and Oct. 10's small net outflow. Meanwhile, funding and basis compressed sharply, confirming deleveraging on perpetuals and dated futures.<\/p>\n<p>The combination of spot ETF demand fading right as derivatives leverage cleared helped explain the violent wick and quick stabilization.<\/p>\n<h2>Liquidity gaps and on-chain resilience<\/h2>\n<p>Stress concentrated where order books were thinnest. Several altcoins briefly printed near zero on some exchanges, driven by leverage unwind pullbacks that left momentary air pockets in specific pairs.<\/p>\n<p>Bitcoin stabilized more quickly because it benefits from a deeper order book and a developing ETF buyer base.<\/p>\n<p>Altcoins, lacking ETF-style demand sinks, absorbed the full brunt of derivative deleveraging through cross-margin collateral sales, negative funding across altcoin perpetuals, and patchy liquidity that amplified losses in the long tail.<\/p>\n<p>The deleveraging flushed $65 billion of speculative positioning from the system in a single session. Until leverage rebuilds and market-makers widen back in, altcoins will likely remain more volatile than Bitcoin.<\/p>\n<p>Despite the bloodshed, the event signals a heavy reset. Fewer forced sellers after the flush, modest basis rebuilding, and funding grinding back toward a flat level point to a market that has shed its fragility relative to a week ago.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Crypto markets absorbed approximately $19 billion to $20 billion in forced liquidations within 24 hours on Oct. 10, marking the largest single-day deleveraging event on record. Hyperliquid processed more than $10 billion, while Binance accounted for roughly $2.4 billion. Altcoins bore the brunt of selling pressure while Bitcoin&#8217;s drawdown remained comparatively contained. Bitwise portfolio manager [&hellip;]<\/p>\n","protected":false},"author":1511,"featured_media":502780,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1,60840,78665],"tags":[],"post_folder":[],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v21.9 (Yoast SEO v21.9.1) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Weekend &#039;Crypto Black Friday&#039; liquidation cascade: What actually happened?<\/title>\n<meta name=\"description\" content=\"A data-first post-mortem on liquidations, funding, and ETF dip-buyers.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/cryptoslate.com\/weekend-crypto-black-friday-liquidation-cascade-what-actually-happened\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Weekend &#039;Crypto Black Friday&#039; 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