So what happened October 10 2025?
This is called a “liquidation cascade”, when all the degens rushed on the same side of a boat (uncertainly over-levelraged longs at an obvious top).
The exact mechanics cannot be known in principle, since everything happens at the level of exchange’s matching engines, which may even glitch at such high loads.
The facts are that market orders are “by design” executed to the words possible price (depending on the direction) to maximize profits for an exchange, since clients “don’t care”, and limit orders are almost always been “not filled” (not out problem!), to maximize loses of our “valued customers” and hence exchange’s profits.
Again, any exchange makes the most profits when the “clients” do a lot of impulsive stupid shit, ideally being confused with an convoluted and thus error-prone (which means more profits) user interfaces.
So, the stop loses either fell through (unfilled) or being executed at a worst possible market price (every millisecond way worse than before), then unfilled stops cause liquidations, which are implicit sell orders to recover the borrowed (for a leverage) crapto.
Liquidations (a forceful closing of a position) are also controlled by an algorithms, which trying to “predict” the upcoming price action and to close the position “early-enough” to sell at a profit. That, of course, would not work in a “cascade”, which is a form of a “feed-forward loop”.
So, this is roughly how the -50% wick down has been formed in a few seconds.
Then, the sell orders (in a queue) has been exhausted, and the buy orders become “dominant”. Being filled at a worst possible price, they quickly formed a “green dildo”, having no sell pressure whatsoever, so the price “rebounded” at an orders of magnitude lower volume.
Everything happened in just a few seconds at the level of order execution edginess, no human has the time to say “ahhh” .
This happened (was possible) exactly because too many retards opened leveraged longs in a week which preceded the crash, in additions to retards who kept insanely leveraged longs open for weeks, or even months.
Any mature trader would deleverage at an obvious (triple!) top and would try to short the top, even if this is the most painful and costly strategy, a sort of “maximum pain” strategy.
The most diffcult thing in trading, by the way, for an intelligent person, at least, is the acute pain of a false, but very intense nevertheless cognitive dissonance which the brain feels when there is no “confirmations” to its current “justified” beliefs.
Idiots are usually holdings “contrarian” opinions for the most primitive form of a “virtue signalling” to sound smart and to proclaim that they are “not like everytone else” (the main social drive, which underlay all of social psychology, even in animal “societies”). Most of “contrarians” are just primitive impostors.
Smart people hold certain opinions not because they are contrarian to what the vast majority of normies currently believe in, but because it conform to and reflect the version of reality (a crude map of an everchanging territory) they have managed to build up inside their heads, striving “to see things as they [really] are” (as much as it is humanly possible).
No, the ponzi will crash not because normies believe that “this is a new paradigm”, not even because the meme-chart of phases exist, but because ponzies are unsustainable in principle, by the very “shape” of the processes they form. The boat metafor is a perfect illustration in this context.
Illiquid shitcoins and scamcoins (so called “alts”) got a -50% wicks not because some “evil joos”, but precisely because the actual interest has been shifted towards new targets of mass hysteria (current memes) and liquidity has been drained up long ago and went towards BNB, ZCash and whatever PnD processes (social formations) were spontaneously formed by the small but very active crowds degens, chasing “what hasn’t pumped yet”. Nothing but old leveraged pistons left on these shitcoins, so liquidations and stop triggerings “cascaded” the most through them.
Again, no “evil CZ” or even evil “whales”, it is just too many degens rushed to the same side of a boat (where there were a lot of “old” degens already). It is that simple.
And the Numbers confirm – a whoping 16 billions worth of positions has been liquidated in the cascade. This is about 10 times larger than the previous crypto crash wipeout.
This shows how many degens were suddenly on the same side of the boat. Everything that followed happened strictly according to the laws of [an exchange] mechanics.
Notice also that it took an unprecedented triple top to form (caused by institutions who cane way too late to the party, and the fucking Saylor, trying desperately to prop it up).
All the severe psychological pain and suffering of those who called it and foolishly tried to time it (against the institutional money being thrown at the problem) eventually paid back.