On October 10, 2025, over $19 billion was liquidated in a single day. Wintermute moved $700M to Binance, Trump announced 100% tariffs, and technical failures at Binance led to a catastrophic market crash.
Wintermute: The Market Maker’s Swift Exit
According to crypto trader Hanzo, Wintermute — a leading algorithmic trader and one of Binance’s primary liquidity providers — moved a staggering $700 million into the exchange just hours before the crash, including $200 million in Bitcoin.
This massive transfer went largely unnoticed but quietly laid the groundwork for the chaos. As traditional markets began to shake, crypto followed. On Binance, order books suddenly emptied. Support “walls” vanished, leaving the market in free fall.
Binance: Margin Chaos and Technical Failures Deepen Losses
Adding to the confusion, experts like Martin Hiesboeck from Uphold claimed that the crash began with a targeted exploit in Binance’s Unified Margin Account system. Assets like USDe, wBETH, and BNSOL were manipulated, causing nearly $1 billion in forced liquidations.
On-chain analysts and Colin Wu reported that USDe’s price on Binance dropped to $0.65, while on other platforms it remained above $0.90.
The exchange’s technical failures worsened the situation: stop and limit orders froze, only liquidations went through, and even low-leverage traders suffered massive losses. Between 11:00 PM and midnight, thousands of Bitcoins were sold within minutes.
At the $108,000 level, liquidity providers stopped defending the market, and some altcoins dropped by as much as 80%. This crash highlighted the real risks of centralized exchanges — system flaws, manipulation, and frozen orders can turn a correction into total destruction.
Donald Trump: 100% Tariffs on China
Meanwhile, President Trump announced 100% tariffs on Chinese imports at the height of the instability, further fueling the fire. Stocks dropped first, followed by a massive crypto selloff.
Some traders even accused Trump-affiliated entities of selling tokens ahead of the announcement, hinting at potential insider trading.
Key Lessons: Lack of Transparency and the Vulnerability of Centralized Platforms
The crash once again raised serious concerns about transparency, exchange stability, and the risks of centralized control in crypto trading.
The community is calling for greater accountability, real-time liquidation data, and protective mechanisms against false liquidations. Now, the spotlight is not just on prices, but on the structural integrity of the platforms where billions are at stake.
Frequently Asked Questions
Find answers to the most common questions below.
A combination of factors: Wintermute transferred $700M to Binance before the crash, Binance suffered a technical margin exploit, and Donald Trump announced 100% tariffs on China, triggering panic.
Binance’s Unified Margin Account system was reportedly exploited, causing $1B in forced liquidations. Technical failures like frozen orders amplified the losses for traders.
Some traders suspect Trump-linked entities offloaded tokens before the 100% tariff announcement, hinting at possible insider trading, although no formal evidence has been presented.
This article is for general informational purposes only and is not intended to be, and should not be construed as, legal or investment advice. Crypto-assets are highly volatile, so only invest funds that you are willing to lose and use your own research and risk management.
