Exploring Crypto's $19B Collapse: The Impact of Tariff Surprises and Auto-Liquidations on the Market
Written by Ohris M. Greyoon, Blockchain & Crypto Expert
Source: Coinmarketcap
Updated: Oct 12 2025Market Impact: The cryptocurrency market experienced a historic $19 billion liquidation event triggered by U.S. President Trump's announcement of new tariffs on China, leading to over 1.6 million traders being liquidated.
Role of Auto-Deleveraging: The derivatives exchange Hyperliquid faced significant losses due to its auto-deleveraging mechanism, which exacerbated market volatility by force-closing profitable positions, while some entities like Hyperliquid’s HLP vault profited by buying distressed assets.
About the author
Ohris M. Greyoon
Ohris M. Greyoon holds a Master’s in Computer Science from MIT and has 10 years of experience in blockchain technology and cryptocurrency markets. A pioneer in decentralized finance (DeFi) analysis, he leads Intellectia’s Crypto News, offering cutting-edge insights into digital assets.
