October Crypto Market Crash Results in $20 Billion Loss
Written by Ohris M. Greyoon, Blockchain & Crypto Expert
Source: Coinmarketcap
Updated: Jan 09 2026- Market Crash Impact: The October crypto market crash resulted in approximately $20 billion in losses, severely damaging market maker positions and highlighting the vulnerabilities of leveraged trading strategies amid extreme volatility.
- Liquidity Crisis: Auto-deleveraging triggered by liquidations caused liquidity withdrawals, leaving order books at their lowest levels since 2022, which further exacerbated market volatility.
- Shift in Trading Dynamics: Market participants are shifting from traditional platforms to decentralized perpetual swaps, although concerns about manipulation persist, indicating a significant change in the trading environment.
- Transparency Issues: The incident exposed flaws in on-chain transparency and emphasized the resilience of trusted exchanges, although high transparency does not always safeguard traders, especially on platforms lacking proven security.
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.
