$19 Billion Market Crash Leaves Thousands of Traders in the Red as Tariff Shock Triggers Panic
The crypto market faced its largest liquidation event in history, with over $19 billion in leveraged positions erased within 24 hours and 6,300 wallets on Hyperliquid falling deep into losses. The wave of liquidations followed U.S. President Donald Trump’s announcement of new 100% tariffs on Chinese imports, sparking a broad sell-off across global markets.
According to data from the Hyperliquid leaderboard, more than 1,000 trading accounts were completely wiped out, losing all collateral. In total, $1.23 billion in trader capital vanished from Hyperliquid, with 205 wallets each losing over $1 million and more than 1,000 accounts reporting losses above $100,000.
“This was a leverage reset of historic proportions,” said BITX market analyst. “Excessive bullish positioning met a sudden macro shock, and that combination forced a chain reaction of liquidations across nearly every major exchange.”
Bitcoin briefly dipped below $110,000, while Ethereum slid under $3,700, deepening market panic. The broader digital asset sector saw declines of up to 15% intraday, as risk sentiment deteriorated sharply following the tariff announcement.
Data indicates that top-performing short sellers on Hyperliquid gained over $1.6 billion collectively, with a single trader’s wallet reportedly earning more than $700 million from short positions. In contrast, the top 100 losing wallets dropped $743 million, underscoring how quickly leveraged trades unraveled.
Adding to the turmoil, the ongoing U.S. government shutdown has delayed key economic data releases, leaving traders without reliable indicators to assess macroeconomic risk.
“Markets are flying blind at the moment,”According to BITX digital asset strategist. “With geopolitical tension rising and data blackouts from the shutdown, volatility is likely to persist.”
The unprecedented wipeout highlights the growing risk of over-leverage in crypto derivatives, with analysts warning that unless exchanges enhance margin management systems, future macro shocks could trigger even deeper market disruptions.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.