More than 223,000 traders were wiped out over a 24‑hour span as crypto markets plunged on Oct. 10, with total liquidations reaching $879.64 million. The largest single liquidation hit the BTC-USD pair on Hyperliquid at $21.42 million, underscoring how leverage magnified losses across derivatives venues.
Initial assessments indicate the heaviest damage fell on high‑leverage traders and market makers operating on Hyperliquid rather than on larger trading firms. Among the hardest hit were:
- ABC, a top Hyperliquid liquidity provider, which lost $35 million, leaving the account down 73%.
- Cyantarb, a market maker forced to rapidly unwind roughly $100 million in positions, incurring an estimated $18–19 million loss.
- Selini Capital, a hedge fund, which lost up to $16 million overnight, with total liquidated notional estimated around $50–70 million.
Rumors that Wintermute had gone bankrupt circulated during the turmoil, but the firm denied the claims. Market participants noted that some liquidity providers appeared to pause quoting during the drop, a dynamic that likely deepened the move and accelerated the liquidation cascade.
Binance also came under scrutiny as traders cited unstable collateral dynamics and order book delays, conditions that can fuel forced unwinds when volatility spikes. Despite the stress, no major firm was completely wiped out.
The Oct. 10 episode highlights the ongoing fragility of crypto market structure during sharp drawdowns—particularly on perpetuals venues where leverage, thin liquidity, and infrastructure hiccups can rapidly compound into nine‑figure liquidation events. Traders are likely to watch exchange risk controls, quoting resiliency, and liquidity depth closely in the days ahead.