October Market Flash Crash Review: Institutional Withdrawals After $1.3 Trillion Market Capitalization Evaporation

2025-12-23 12:00:09

On October 10, the crypto market experienced a significant shock. The market capitalization evaporated by approximately 1.3 trillion dollars in one go. How large is this scale? The insurance fund of a leading exchange directly lost 184 million dollars.

The liquidation in this area is the most exaggerated. The liquidation orders on the Hyperliquid platform accounted for 53% of the total liquidation volume across the entire network, indicating that the risks of leveraged trading completely erupted at that moment. At the same time, Ethena's USDe stablecoin experienced a net outflow of $8.3 billion, with users withdrawing stablecoin assets on a large scale.

The subsequent impact can better illustrate the issue. The overall market trading volume has declined by nearly 50%, and investors are on the sidelines. The performance of the Bitcoin spot ETF is particularly evident—net outflows have reached $5 billion, which means institutional investors are systematically reducing their risk exposure. From the signals of insurance fund losses, concentrated liquidations, and capital outflows, the process of risk release in the market is still ongoing.

USDE-0,02%

BTC-0,36%

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ConsensusBot

· 2025-12-26 10:03

1.3 trillion just evaporated? How uncomfortable must the leveraged guys have felt that day haha Institutions are really fleeing, with a net outflow of $5 billion—this number is too frightening, it feels like the risk hasn't been fully unleashed yet Hyperliquid's 53% liquidation volume—how many people got liquidated... USDe outflow of $8.3 billion, stablecoin confidence is almost gone Trading volume halved—this is probably a sign of a major panic Insurance fund lost $184 million? Laughable, risk management can't even hold up Guys still willing to leverage now are really brave, or just looking for death

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just_vibin_onchain

· 2025-12-23 12:25

Wow, 1.3 trillion just disappeared like that, the 53% leverage liquidation on Hyperliquid is really something, they deserve it. Institutions pulled out 5 billion, it seems we still need to hold coins steadily. With so much USDe flowing out, stablecoins aren’t stable anymore, right? With this wave, there are probably more bankruptcies, haha. The market is still releasing risks, it feels like the bottom hasn’t been reached yet.

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