In one of the most violent selloffs in crypto history, about 19 to 20 billion dollars in leveraged positions were liquidated in roughly a day, with an estimated 1.6 million traders forced out of positions. Analysts link the cascade to a surprise 100 percent US tariff announcement on Chinese imports, high market leverage, and thin order books in long-tail tokens. On the human side, multiple outlets reported that Ukrainian trader Konstantin Galich, known online as Kostya Kudo, was found dead as the crash unfolded. Investigations are ongoing and exact circumstances remain under review.
The headline numbers
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Around 19 to 19.5 billion dollars in liquidations across the market within 24 hours
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More than 1.6 million accounts liquidated
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Altcoins suffered the deepest drawdowns, while Bitcoin and Ether also fell sharply
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Analysts estimate about 65 billion dollars of open interest was wiped out across derivatives venues
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Hyperliquid traders saw more than 1.23 billion dollars of losses and about 6,300 wallets turned negative according to venue and analytics tallies
What likely triggered the cascade
Macro shock
The US announced 100 percent tariffs on Chinese imports and tightened restrictions related to trade, which rattled risk assets globally. Markets reacted immediately and crypto, which carries higher leverage, moved fastest. ABC News
Leverage and thin liquidity
Perpetual futures with high leverage met thin order books, especially in small and mid-cap tokens. Once prices started to fall, forced selling and auto-deleveraging accelerated the move. Bitwise’s post-mortem notes an open interest reset to summer levels and stresses how long-tail tokens lacked depth. CoinDesk
Venue concentration
Losses were widespread, yet data surfaced quickly from Hyperliquid, where public leaderboards and third-party tracking showed over a billion dollars in trader losses and thousands of affected wallets. CoinDesk
How this compares to past selloffs
Coverage across mainstream and industry outlets characterized this as the largest single-day liquidation in crypto history, eclipsing previous one-day waves by a wide margin. CoinDesk
The human side: reports about Konstantin Galich
Multiple reports stated that Konstantin Galich, also known as Kostya Kudo, was found dead in Kyiv during the market turmoil. Authorities are investigating and details continue to emerge. Some outlets linked his death to large losses during the crash, but official conclusions have not been published. It is important to treat this sensitively and avoid speculation while the investigation is open. CryptoSlate
If you or someone you know is struggling or in immediate danger, please seek help now. In the United States you can call or text 988 to reach the Suicide and Crisis Lifeline. In other countries contact your local emergency number or a trusted local helpline. Your life matters and help is available.
Key lessons for traders and investors
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Respect macro headlines
Policy shocks and trade headlines can move crypto quickly and violently. Consider reducing exposure around major macro events and news windows. Reuters -
Use conservative leverage
High leverage magnifies both gains and losses. Favor isolated margin and pre-planned stop levels instead of cross margin where appropriate. -
Watch liquidity and order book depth
Long-tail tokens can gap with little warning when liquidity dries up, which makes stop execution less reliable. CoinDesk -
Track open interest and funding
Elevated open interest and crowded long positioning can set the stage for liquidation cascades when volatility spikes. CoinDesk -
Diversify venue and product mix
Balance spot exposure against derivatives, and avoid oversized positions on a single venue. -
Protect mental health
Trading is stressful. Set limits, take breaks, and ask for help when needed.
Frequently asked questions
What does a liquidation mean in crypto?
Liquidation happens when a leveraged position no longer meets margin requirements. The exchange closes the position automatically to prevent further losses.
Why did altcoins fall more than Bitcoin?
Altcoins often have thinner order books and less institutional liquidity. During stress, this leads to faster price swings and deeper drawdowns. Bloomberg
Was the tariff news the only cause?
It was a major catalyst, but the scale of losses reflects pre-existing high leverage and thin liquidity. Those conditions amplified the move. Reuters+1
Is this a bottom or will volatility continue?
Analysts noted a large open interest reset, which can reduce forced selling pressure in the short term. Volatility often remains elevated after shocks, so prudent risk management is essential.
Sources
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CoinDesk market coverage and Bitwise post-mortem analysis. CoinDesk+1
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Yahoo Finance digest of liquidation totals. Yahoo Finance
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Bloomberg overview of trader liquidations and altcoin weakness. Bloomberg
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ABC News and Reuters reporting on tariff announcements and market reaction. ABC News+1
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Hyperliquid wallet impact summaries. Holder+1
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CryptoSlate and Economic Times reporting on Konstantin Galich. CryptoSlate+1
