"Crypto’s 'largest liquidation in history': who lost the most? 'New perpetual contract star' Hyperliquid hit hardest."

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This weekend, the crypto world experienced the most violent liquidation event in its history.

On October 11, according to data tracking agency CoinGlass, nearly $20 billion worth of cryptocurrency bets were forcibly liquidated in the past 24 hours, with more than 1.6 million traders liquidated, the vast majority being long positions.

Bitcoin's price plunged from a historic high of over $126,000 to a multi-month low of $105,000, although it later rebounded to above $110,000. Notably, in the first week of October, Bitcoin had surged more than 10%, breaking through the previous all-time high of $126,000.

The price of Ethereum, the second-largest cryptocurrency, also plunged from a recent high near $4,700 to below $3,500.

The real disaster struck the altcoin market.

ATOM fell from $4 to $0.001;

SUI fell from $3.4 to $0.56;

APT dropped from $5 to $0.75;

SEI fell from $0.28 to $0.07;

LINK declined from $22 to $8;

ADA dropped from $0.8 to $0.3.

The near $20 billion wiped out may actually be conservative. CoinGlass stated on social platform X when discussing these numbers: "The actual total may be much higher—Binance only reports one liquidation order per second."

The liquidation amount of $19.31 billion is more than ten times the liquidation losses during the pandemic and the FTX collapse, which were $1.2 billion and $1.6 billion respectively. The agency described this event as:

The largest liquidation event in cryptocurrency history.

Market analysis believes this crypto "catastrophe" is closely related to the latest tariff comments made by US President Trump.

Meanwhile, Crypto.com CEO Kris Marszalek called for "regulators to investigate the exchanges with the most liquidations in the past 24 hours."

So, in this storm, who suffered the most losses?

The emerging perpetual contract exchange Hyperliquid unexpectedly became the center of the liquidation event. Despite being much smaller than its competitors, it ranked first in liquidation amount.

Storm Center Hyperliquid: Huge Liquidations and Mechanism Controversy

Although the platform is much smaller than competitors like Binance, Hyperliquid recorded the highest liquidation amount in the entire market at $10.31 billion according to CoinGlass data. By comparison, Bybit and Binance saw $4.65 billion and $2.41 billion in liquidations, respectively.

Zaheer Ebtikar, founder of crypto fund Split Capital, pointed out that Hyperliquid "had the largest number of long liquidations and the least matching liquidity."

According to social media account @LookOnChain, in this market crash, over 1000 wallets on Hyperliquid were completely emptied, with more than 6300 wallets in a loss, resulting in total losses exceeding $1.23 billion.

Market participants have pointed at the platform's Auto-Deleveraging (ADL) mechanism. ADL is designed to automatically close out the positions of the winning side or highly leveraged counterparties to protect the exchange when the insurance fund is insufficient to cover forced liquidation losses.

However, many in the market believe that this mechanism actually exacerbated the sell-off during this event.

Spencer Hallarn, Global Head of OTC at crypto investment firm GSR, said: "This mechanism creates complex problems, especially for participants with more complex portfolios." It can lead to quant market makers' hedging positions being liquidated prematurely, causing their overall portfolios to become unbalanced.

Some Win, Some Lose: Who Profited in the Crash?

However, this disaster was not bad news for everyone. According to CoinDesk, data shows that the top 100 traders on Hyperliquid collectively earned $1.69 billion, while the top 100 losing traders lost $743 million. This means a net profit of $951 million, concentrated in the hands of a few highly leveraged short sellers.

Among them, the biggest winner was a trader with the wallet address 0x5273...065f, earning more than $700 million by shorting. The biggest loser, an account called "TheWhiteWhale," lost $625,000. In addition, a community vault called Hyperliquid Provider (HLP) profited more than $30 million in this sell-off by taking over and liquidating losing positions.

Aftershocks Remain, Will Bitcoin Fall Below $100,000?

Although the market has started to recover some ground after the weekend crash, the full impact of the event may take days or even weeks to emerge.

Edward Chin, CEO of crypto hedge fund Parataxis, said: "I suspect in the coming days or weeks, we'll hear news of some funds blowing up or market makers taking heavy losses."

At present, the market focus has shifted to counterparty risk and whether the event will trigger broader contagion. Caroline Mauron, co-founder of Orbit Markets, pointed out that the next major support for Bitcoin is at $100,000, and a drop below this level "would mark the end of the bull cycle of the past three years."

Vincent Liu, Chief Investment Officer at Kronos Research, believes the plunge "was triggered by US-China tariff concerns, but fueled by excessive institutional leverage," highlighting the close link between cryptocurrency and the macroeconomic environment. He expects continued volatility but suggests watching for rebound signals after the market clears out.

Risk Warning and DisclaimerThe market involves risks, so investment should be cautious. This article does not constitute personal investment advice, nor does it take into account individual users' specific investment objectives, financial conditions, or needs. Users should consider whether any opinions, views, or conclusions in this article are suitable for their particular situation. Investing accordingly is at your own risk. ```