As reported by Cryptofrontnews, over 1.6 million traders faced liquidations on October 12, 2025, with a 7:1 long-to-short ratio amplifying downside pressure. Bitcoin’s market cap dropped $380 billion after the first-ever $20,000 candlestick before rebounding. Analysts attributed the crash to leverage, thin liquidity, and the timing of a 100% tariff announcement on Chinese goods by Donald Trump, not weak fundamentals. The Kobeissi Letter noted two major short entries totaling $23 million just before the announcement, triggering a surge in liquidations. Volumes spiked between 5 PM and 6 PM ET as liquidity remained low, with some positions falling 95%. Whales closed shorts into the bottom, and the event was described as a technical unwind rather than a fundamental breakdown.
Whales Drive Record $20B Liquidations as Trump Tariff News Sparks Crypto Crash
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